You are considering the following two mutually exclusive projects. If the cost of capital for both projects

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You are considering the following two mutually exclusive projects. If the cost of capital for both projects is 7 percent, which statement concerning capital-budgeting rules listed will be correct in this situation?

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a. Both NPV and IRR will choose the correct project(s).

b. Neither NPV nor IRR will choose the correct project(s).

c. NPV will choose the correct project(s), IRR will not.

d. IRR will choose the correct project(s), NPV will not.

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