Alf is considering opening an inter-planetary delivery company. He has analyzed the project using the discounted payback method. Which one of these statements is true?
-Discounted payback does not require a cutoff point to evaluate a capital budgeting project.
-Payback is a better method of analysis than discounted payback.
-The discounted payback period decreases as the discount rate decreases.
-Discounted payback is biased towards long-term projects. Discounted payback is used more frequently in business than payback.