Which one of the following istruefor the internal rate of return (IRR) method?

• It assumes cash proceeds during the life of a project can be reinvested to earn the same rate of return as the weighted-average cost of capital.
• Depending on the pattern of after-tax cash flows, multiple IRRs for a given proposed investment are possible.
• IRRs of multiple projects are additive (that is, can be added together).
• It can be used to make optimal decisions regarding mutually exclusive investment projects.
• It makes it easy to incorporate multiple costs of capital.