Which of the following statements is correct?

-the regular payback is useful as an indicator of a project's liquidity because it gives managers an idea of how long it will take to recover the funds invested in a project

-the discounted payback method recognizes all cash flows over a project's life, and it also adjusts these cash flows to account for the time value of money

-the regular payback method recognizes all cash flows over a project's life

-the regular payback does not consider cash flows beyond the payback year, but the discounted payback overcomes this defect