Mock Question

Question 1:
The following information is available for two projects. Only one project can be undertaken.

Project A

Project B

Internal rate of return (IRR)

16%

17%

Discounted payback period

3.6 years

4.1 years

Net present value (NPV)

$18,300

$16,900

Which TWO of the following statements are true?

At a cost of capital of 17% project B would have a zero NPV

Ranking the projects based on discounted payback period would make project B seem more favourable

Project A should be accepted because it has the higher NPV

Project B should be accepted because it has the higher IRR

I am not confirm about answer.
I did 1 and 3 while other did 1 and 4. Can you help me out how 4th statement is better than 3rd.

Question 2:
Which TWO of the following statements about cost control and cost reduction are true?

Cost control is concerned with regulating the costs of operating a business

Cost reduction is a planned approach to reducing expenditure

Cost control starts with the assumption that current cost levels are too high

Cost reduction aims to reduce costs to budget level

Answer is 1 and 2. I did 2 and 3. How can we control a cost if we do not decide that is it higher than budgeted or standards?
Please explain why 1 is correct and 3 is incorrect.

Thank you in advance Professor.