Which of the following statements is INCORRECT?

a. The IRR method is appealing to some managers because it produces a rate of return upon which to base decisions rather than a dollar amount like the NPV method.

b. One of the disadvantages of choosing between mutually exclusive projects on the basis of discounted payback method is that you might choose the project with the faster payback period but with lower total return.

c. When choosing between mutually exclusive projects, managers should accept all projects with IRRs greater than the weighted average cost of capital.

d. For independent projects, the decision to accept or reject will always be the same using either the MIRR method or the NPV method.

e. When choosing between mutually exclusive projects, managers should accept the project with the highest positive NPV.

Which of the following statements is CORRECT?

a. Other things equal, the IRR of a project increases when the WACC decreases.

b. Other things equal, the MIRR of a project remains the same when the WACC decreases.

c. Other things equal, the payback period of a project increases when the WACC decreases.

d. Other things equal, the discounted payback period of a project increases when the WACC decreases.

e. Other things equal, the NPV of a project decreases when the WACC increases.