Which of the following statements is incorrect?

Question 1 options:

	The internal rate of return is that discount rate which equates the present value of the cash outflows (or costs) with the present value of the cash inflows.
	If a project's NPV exceeds the project's IRR, then the project should be accepted.
	When NPV and IRR methods do not agree on two mutually exclusive projects, the decision should generally be resolved in favor of the project with the higher NPV.
	The NPV method's assumption that cash inflows are reinvested at the cost of capital is more reasonable than the IRR's assumption that cash flows are reinvested at the IRR.
	The NPV and IRR methods, when used to evaluate independent projects with normal cash flows, will lead to the same accept/reject decision.