Which of the following statements is true or false? IRR measures the average return of the investment and the sensitivity of the NPV to any estimation error in the cost of capital. The NPV profile shows the NPV over a range of discount rates. The IRR investment rule will identify the correct decision in many, but not all, situations. By setting the NPV equal to zero and solving for r, we find the IRR. The payback rule is simple to calculate and favors short-term investments. It will indicate those projects with highest NPV. The IRR Investment Rule states to take any investment opportunity where the IRR exceeds the opportunity cost of capital