Question 16 5 pts Which of the following statements is TRUE? The NPV method automatically deals correctly with externalities, even if the externalities are not specifically Identified, but the IRR method does not if sunk costs are considered and reflected in a project's cash flows, then the project's calculated NPV will be higher than it otherwise would be An example of an externality is a situation where a bank opens a new office, and that new office causes deposits in the bank's other offices to decline An externality is a situation where a project would have only an adverse effect, but not a favorable etfect on some other part of the firm's overall operations