Which of the following statements regarding the payback method is incorrect? Multiple Choice When cash flows are equal each year, the payback perlod is calculated by dividing the initial Investment in the project by its annual cash flow. The payback method is often used as a screening tool for potential investments. In general, projects with longer payback periods are safer Investments than those with shorter payback periods. The payback period is the amount of time it takes for a capital investment to "pay for itself