Question 19 Which if the following statements is true? All of the answers are correct. The IRR method assumes that all project cash flows are reinvested and earn a rate equal to the firm's WACC. None of the answers are correct. Choosing the project having the highest IRR will lead to the wrong choice being made. If IRR > cost of capital, the project will have a positive NPV. Question 18 Which of the following statements is false? If two projects are independent, and both have positive NPVs, then one should accept both. NPV will be greater than zero whenever a project's rate of return exceeds its cost of capital. If two projects are mutually exclusive, then only accept the project having the higher NPV. One should always accept all projects having an NPV greater than zero. Any accepted project that has a positive NPV will increase firm value. 8 pts