Which of the following statement is incorrect?

1,The main criticisms of the net present value are that cash flows after the payback period are ignored and the time value of money is not considered.

2.The IRR is the discount rate that makes the present value of a project's cash flows equal its initial investment.

3.Most of the answers are correct except one.

4.The project from the mutually exclusive list with the highest positive NPV should be ranked first, the next highest should be ranked second, and so on.

5.NPV is the present value of the project's cash flows, discounted at the firm's required rate of return, less the cost of the initial investment.