1. Project X and Y have an internal rate of return of 20% and 15% respectively. Both projects have a positive net present value. Which of the following statements is most correct?

1. Project X must have a higher NPV then Project Y.
2. If both projects have the same WACC, Project X must have a higher NPV
3. Project X must have a shorter payback than Project Y.
4. Project X payback is shorter because it considered cash flows beyond the payback period.
5. None of the above answers is correct.