Question Completion Status: Moving to another question will save this response. Question 7 Which of the following statements is CORRECT? 1. Sunk costs must be considered if the IRR method is used but not if the firm relies on the NPV method. 2.A good example of a sunk cost is a situation where a bank opens a new office, and that new office leads to a decline in deposits af te 3. A good example of a sunk cost is money that a banking corporation spent last year to investigate the site for a new office, then expe whether to go forward with the project, 4.If sunk costs are considered and reflected in a project's cash flows, then the project's calculated NPV will be higher than it otherwise would be. S. An example of a sunk cost is the cost associated with restoring the site of a strip mine once the ore has been depleted. Moving to another question will save this response