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5. Which of the following statements is correct? I. In capital budgeting, we ignore the interest payments (.i.e., the cost of debt financing) and do not include them in a project's NPV calculation. II. Since the focus of capital budgeting is on cash flows rather than on net income, changes in non-cash balance sheet accounts such as inventory are not relevant in NPV analysis. a. I only b. Il only Both I and II d. Neither I nor II C