Choose all that are appropriate.

1. Returns to capital that exceed costs of capital should result in value creation.
2. Increased leverage will not necessarily result in enhanced firm value.
3. A project with a higher internal rate of return (IRR) is not necessarily superior to a project with lower IRR.
4. The present value (PV) of cashflows from a project is not sufficient to determine if the project creates value for a business.
5. Price to earnings ratio is an example of a valuation multiple.