Which two of the following five statements are correct? Select two alternatives:

1) To decide whether to invest using the NPV rule, we need to know the cost of capital.

2)If you are unsure of your cost of capital estimate, it is important to determine how sensitive your analysis is to errors in this estimate.

3)In general, the IRR rule works for a stand-alone project if all of the project's positive cash flows precede its negative cash flows.

4)Since the IRR rule is based upon the rate at which the NPV equals zero, like the NPV decisionrule, the IRR decision rule will always identify the correct investment decisions.

5)The IRR is affected by errors in the estimate of your cost of capital