Question 3 (1.5 points) Under the payback method of analysis: The cash flow in year 2 is valued just as highly as the cash flow in year 1 as long as the required payback period is 3 years or more. The initial cash outlay is ignored. The cash flow in year 3 is ignored if the cutoff payback period is 4 years. A project's initial cost is discounted. A project will be acceptable whenever the payback period exceeds the pre- specified number of years (the cutoff number of years). Page 3 of 10