1. Which of the following scenarios would create problems, if you are trying to determine which of two projects to accept using the internal rate of return?

   I. one of the projects has cash outflows for two years and cash inflows thereafter II. the projects are mutually exclusive III. one project has an initial cost of $22,000 while the other one costs $324,000 IV. one of the projects has unconventional cash flows

   IV only

   I, II, III, and IV

   II, III, and IV only

   I and III only

   I, II, and IV only