Which of the following statement(s) is correct?

Cash flows are conventional when there are no cash inflows prior to a cash outflow. 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. Financing matters for valuation, but is typically ignored in determining cash flows in capital budgeting.

a. All three are false

b. Only 1. is correct

c. All three are correct

d. Only 2. is correct

e. Only 1. and 3. are correct

Notes: If possible, please explain why the correct answer is the choice!