When evaluating two mutually exclusive investments, the best method to use is the:

a. internal rate of return

b. net present value

c. payback rule

d. average accounting return

Assuming that their NPVs based on the firm's cost of capital are equal, the NPV of a project whose cash flows accrue relatively rapidly will be more sensitive to changes in the discount rate than the NPV of a project whose cash flows come in later in its life. _____

True.

False.