Which of the following is / are correct?
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Which of the following is / are correct?

1. The IRR is the discount rate which equates the present value of

an investment's expected costs to

     the present value of the expected cash inflows.

2. If the cost of capital for this investment is 9% and the expected return is 10%, the investment should be rejected because its net

     present value will be negative.

Select one:

a. 1 only.

b. 2 only.

c. Both 1 and 2.

d. Neither 1 nor 2.

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