When applying the concept of present value to capital budgeting decisions, which of the following statements is TRUE?

Question 28 options:

	Internal rate of return cannot be computed when cash flows are unequal year to year
	A project with a higher IRR will be preferable over one with a lower IRR.
	A positive NPV means that a project earns less than the cost of capital on a project.
	Residual value is not included in the calculation of Net Present Value.