Which statement is true regarding capital budgeting:

The NPV method considers time value of money, the systemic risk of the project reflects the increase in wealth resulting from this project.

The rate used to discount the cash flows associated with a capital project reflects the firms borrowing cost.

A projects NPV considers the incremental earnings associated with the project.

The IRR method reflects the return that makes the projects NPV positive.

When evaluating mutually exclusive projects, the financial analyst should always select the project with the highest IRR even if it has a lower NPV.

All the above statements are true.