Question 3 Which of the following statements is correct regarding capital budgeting practice? 1. II. Project A and project B are mutually exclusive. Project A's IRR is 10% while project B's IRR is 8%. You should accept project A. The cash flows that should be included in a capital budgeting analysis are those that will only occur if the project is accepted. The cannibalization cash flows as a result of taking a particular project should be included in that project's analysis. The payback rule ignores time value of money. IV. A. B. C. D. E. I and II only II and III only III and IV only II, III, and IV only None of the choice combinations given in A., B., C., and D. are correct. unctian A 4