Assume a capital project requires $42,000 as an initial investment and expects a net cash inflow of $12,000 per year. The payback period method:
a. would consider the capital project aceptable if the company requires a minimum payback period of three years
b. Is usually used as a screening device to eliminate capital projects from further investigation
c. Uses accounting net income rather than cash flows in the calculations
d compares the rate of return to the company's cost of capital.