Which of the following statements is true of various methods for capital budgeting?

a.The NPV and IRR methods can lead to conflicting accept/reject decisions only if independent projects are being evaluated

b.Any type of project might have multiple rates of return if the IRR is more than the opportunity rate of return.

c.The NPV and IRR methods can lead to conflicting accept/reject decisions only if mutually exclusive projects are being evaluated

d.The discounted payback is generally shorter than the regular payback.

e.Larger, longer-term projects are favored over smaller, shorter- term alternatives if the required rate of return is relatively high.

Which of the following statements is true of a capital budgeting project with negative net present value (NPV)?

a.The project's traditional payback period is greater than the firm's expected payback period.

b.The project's internal rate of return is also negative.

c.The project's discounted payback period is greater than its economic life.

d.The project's internal rate of return is higher than the discount rate used for NPV analysis.

e.A firm should invest in a project with negative NPV if the initial investment outlay is low.