Normal projects C and D are mutually exclusive. Project C has a higher (and positive) net present value if the discount rate is less than 12 percent, whereas Project D has a higher net present value if the discount rate exceeds 12 percent. Which of the following statements is most correct?

1. Project D has a higher internal rate of return
2. Project D is probably larger in scale than Project C
3. Project C probably has a faster payback
4. All of the statements above are correct
5. Answers a and c are correct