Which of the following statements is true? 1. The salvage value of new equipment should not be considered when using the internal rate of return method to evaluate a project. 2. If the salvage value of equipment at the end of a project is highly uncertain, the salvage value should be ignored in capital budgeting decisions.

Which of the following statements is true? 1. The salvage value of new equipment should not be considered when using the intermal rate of return method to evaluate a project. 2. If the salvage value of equipment at the end of a project is highly uncertain, the salvage value should be ignored in capital budgeting decisions