Question: how does the payback method's focus on the timing of cash flows potentially misrepresent a project's risk profile? It may underestimate the risk of projects

how does the payback method's focus on the timing of cash flows potentially misrepresent a project's risk profile?
It may underestimate the risk of projects with large, future positive cash flows.
The Payback method usually captures all aspects of a project's risk profile.
It may underestimate the risk of short-term projects while overestimating the risk of long-term ones.
It may overestimate project risk, leading to overly conservatie investment decisions.

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