Which of the following statements is CORRECT? a) The IRR method does not consider all relevant cash flows. b) If a project's IRR is positive, then its NPV must also be positive. c) If a project's IRR is less than the required return, then its NPV will be positive. d) A project's IRR is the discount rate that causes the present value (PV) of the inflows to equal the project's cost. Which of the following items is NOT a disadvantage the payback rule for making capital budgeting decisions? a) It does not directly account for the time value of money in evaluating projects. b) It requires an accurate estimate of the required rate of return for the project. c) It lacks an objective market-based benchmark for evaluating projects. d) It may ignore relevant cash flows to the project. Which of the following statements is CORRECT about a project with "conventional" cash flows where the initial investment is followed by cash inflows? a) A project's NPV is found by compounding the cash inflows at the IRR to find the terminal value (TV), then discounting the TV at the required rate. b) If a project's NPV is less than zero, then its IRR must be less than the required rate of return the project. c) The lower the required rate of return used to calculate it, the lower the calculated NPV will be. d) If a project's NPV is greater than zero, then its IRR must be less than zero. Pettway Inc. is considering Projects S and L, whose cash flows are shown below. These projects are mutually exclusive, equally risky, and not repeatable. Calculate the NPV and IRR for each project. What should Pettway do