Which of the following statements is TRUE? The NPV method automatically deals correctly with externalities, even if the externalities are not specifically identified, but the IRR method does not An compt of an externality is a situation where a bank opens a new office, and that new office causes deposits in the bank's other offices to decline. sunk conts are considered and reflected in a project's cash flows, then the project's calculated NPV will be higher than it otherwise would be An externality is a situation where a project would have only an adverse effect, but not a favorable effect, on some other part of the hum's overall operations