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.

Question 9 options:

1)

I and III

2)

I and IV

3)

II and IV

4)	I, II and III