Which of the following statements is CORRECT? The NPV method automatically deals correctly with externalities, even if the externalities are not specifically identified, but the IRR method does not. This is another reason to favor the NPV. Identifying an externality may lead to a decrease but never an increase in the calculated NPV for a project. Externalities should not be considered when calculating the cash flows for a project because they do not affect the WACC. Both the NPV and IRR methods den correctly with externalities, even if the externalities are not specifically identified. However, the payback method does not. Identifying an externality may lead to either a decrease or an increase in the calculated NPV fora project