Nezir & Company is evaluating the following investment projects: Project A Project B Project Project D Initial investment $400,000 $150,000 $120,000 $100.000 Useful Life 6 years 10 years 7 years 9 years PV of all cash inflows $600,000 $165,000 $100,000 $160,000 2.0 27 Payback period (yes) 4.0 3.5 When using the payback period management only accepts projects that payback within 30% or less of its useful life Consider these statements: 1. Nezir is using the NPV method, all of the projects are acceptable. 2. Nezir is using the Payback Period method, and Nezir can only choose 1 project, Nezir will select Project B 3. If Nezir is using the profitability index in conjunction with NPV (as it should) and Nezir only can choose 1 project, Nezir will select Project D. Only Statement is true Both Statement 1 and 2 are true All of the Statements are false All of the Statements are true Only Statement 2 is true Both Statement and are true Only Statement 3 is true Both Statement 1 and 83 are true