Which of the following statements is/are CORRECT? Assume that the project being considered has normal cash flows, with one outflow followed by a series of inflows. 1) The longer a project's payback period, the more desirable the project is normally considered to be by this criterion. 2) One drawback of the payback criterion for evaluating projects is that this method does not properly account for the time value of money, 0 3) If a project's payback is positive, then because it must have a positive NPV. 4) The regular payback ignores cash flows beyond the payback period. 5) Both b and d are correct statements. Will Project A be recommended? The cost of capital is 12%. Year WNHO Project A -$75,000 $32,400 $30,200 $36,600 1) Yes! Project A has NPV of $4,054.98. 2) No! Project A has NPV of -$5011.98. 3) Yes! Project A has NPV of $78,123.41. 4) NO! Project A has NPV of -$98,025.55. Will Project A be recommended? The cost of capital is 12%. Year Project A -$75,000 $32,400 $30,200 $36,600 WNE 01) NO! Project A has MIRR of 9.55% O2) YES! Project A has MIRR of 13.98% 3) Yes! Project A has MIRR of 19.40% 4) No! Project A has MIRR of 10.00% Will Project A be recommended? The cut-off period is 2 years. The cost of capital is 12%. Year WNHO Project A -$75,000 $32,400 $30,200 $36,600 1) No! Project A has payback period of 2.55 years. 2) Yes! Project A has payback period of 1.98 years. 3) No! Project has payback period of 2.338 years. 4) Yes! Project A has payback period of 1.06 years