Which of the following statements related to payback and discounted payback is/are correct?

I. Payback is a better method of analysis than is discounted payback.

II. Discounted payback is used more frequently in business than is payback.

III. Payback is used more frequently even though discounted payback is a better method.

IV. Both discounted payback and payback require a cutoff point to determine project for acceptance.

V. Discounted payback is biased towards long-term projects while payback is biased towards short-term projects.

Multiple Choice

• III and IV only

• I only

• I, II and III only

• III only

• V only