Which of the following is true regarding the payback method: Multiple Choice A payback period of 3.5 means a company will earn 3.5 times its initial investment. The payback period increases as the cost of capital increases. o When a company is 'cash poor', a project with a short payback period but a low rate of return may be preferable to a project with a long payback period and a high rate of return. per concerne page de recon o C) The computation of the payback period is the project's initial investment divided by the present value of its net cash flows