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Which of the following statements are correct regarding the payback period? I The payback period is computed based on the present value of each of

Which of the following statements are correct regarding the payback period?

I The payback period is computed based on the present value of each of a projects cash flows.

II The payback period is biased in favor of short-term investments and liquidity. III The payback period considers the timing and the amount of all the projects cash flows. IV The payback period is best used to evaluate low-cost and short-term projects.

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