Which of the following statements is true?

A. The internal rate of return method assumes that the cash flows generated by a project are reinvested at a rate of return that equals the company's cost of capital

B. The profitability index and the internal rate of return will always result in the same preference ranking for investment projects.

C. The salvage value of new equipment should not be considered when using the internal rate of return method to evaluate a project.

D. In calculating the profitability index, the initial investment in the project should be reduced by any proceeds from the sale of old equipment

E. none are true