3. An issue with the payback period and discounted payback period is that cash flows beyond the acceptable payback period length considered when making investment decisions which leads to accepting more term investments rather than the highest value creating project. The internal rate of return corrects for these timing issues of cash flows, but has its own problems when dealing with non-conventional cash flows. Additionally for mutually exclusive project, IRR result in different investment decisions than NPV. For mutually exclusive projects, when IRR and NPV conflict we should choose the project with the largest (a) are not; short; can; NPV (b) are not; long; can; NPV (c) are not; short; cannot; IRR (d) are; short; cannot; IRR