U... WU TINH Foto pour TO C2305. Question 2 Which of the following statements is correct regarding capital budgeting practice? 1. When we have the problem of multiple IRRs, regardless of whether the IRR is smaller or greater than the required rate of return the discount rate), NPV is always greater than zero. II. The Profitability Index rule is useful when choosing projects under capital constraint. Sunk cost, opportunity cost of using a physical asset, positive or negative side effects, and change in net working capital are examples of incremental cash flows that should be included for capital budgeting purpose. I only II only Ill only I and II only None of the choice combinations given in A., B., C., and D. are correct. D. E. &