Which one of the following statements is correct concerning the payback rule?

a. The rule works best when comparing mutually exclusive projects.

b. The payback period is computed using the present value of each of the cash flows.

c. The rule is flawed because it ignores all cash flows after some arbitrary point in time.

d. The rule is biased in favor of long-term projects.

e. The rule says that you should accept a project if the payback period is greater than 1.0.