Which one of the following statement is true?

For mutually exclusive projects, we should pick the project with the highest IRR.

Consider the capital budgeting decisions of independent projects. With investment type of cash flows, we should accept the investment opportunity if its IRR is smaller than the rate offered elsewhere for similar opportunities.

Payback rule always lead to the same decision as that of the NPV rule.

A financing type of cash flow involves a negative cash flow upfront followed by positive cash flows in the future.

Consider the capital budgeting decisions of independent projects. With financing type of cash flows, we should accept the financing opportunity if its IRR is smaller than the rate charged elsewhere for similar opportunities.