Question $3$

$1$ pts

Which of the following statements is CORRECT? Assume that the project being considered has normal cash flows, with one outflow followed by a series of inflows.

I. One defect of the IRR method is that it does not take account of the time value of money.

II$.$ One defect of the IRR method is that it does not take account of the cost of capital.

III. A project's IRR is the discount rate that causes the PV of the inflows to equal the project's cost.

I and III only

I only

I, II and III

II and III only

III only