Which one of the following statements is true?

Select one:

a. The discounted payback method is an important measure to guide the choice of independent projects under capital rationing.

b. The net present value (NPV) of a project will always be greater than zero when the present value of cash inflows are positive.

c. In the absence of capital constraints all mutually exclusive projects that yield a positive NPV should be undertaken.

d. Where mutually exclusive projects have unequal lives the chain replication approach is more computationally efficient than the equivalent annual net present value (EANPV) approach.

e. Where future project cash flows from a project change sign (e.g. from positive to negative) the NPV method is preferred over the internal rate of return.