Which of the following statement$($s$)$ is correct? Explain your answers.

$1.$ Cash flows are always conventional when there are no cash inflows prior to a

cash outflow.

$2.$ In terms of shareholder wealth maximization in the context of mutually

exclusive projects, the project with the higher IRR is not necessarily better than

the project with the lower IRR.

$3.$ Financing matters for valuation, but is typically ignored in determining cash

flows in capital budgeting