Which one of the following statements is correct?

A. A longer payback period is preferred over a shorter payback period.
B. The payback rule states that you should accept a project if the payback period is less than one year.
C. The payback period ignores the time value of money.
D. The payback rule is biased in favor of long-term projects.
E. The payback period considers the timing and amount of all of a project's cash flows.

Ans: C. The payback period ignores the time value of money.