Which of the following statements about the payback period method of evaluating capital investment projects is true?

Select one:

a$.$ The payback period method fails to consider how long an investment will generate cash inflows beyond the payback period.

b$.$ The payback period method reflects differences in the timing of net cash flows within the payback period.

c$.$ If two projects have the same risks, the same payback period, and the same initial investment, they are equally attractive.

d$.$ A disadvantage of an investment project with a short payback period is that it will produce revenue for only a short period of time.

e$.$ Managers prefer to invest in projects with longer payback periods to reduce the risk of an unprofitable investment over the long run.