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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 investments expected costs to

Which of the following is / are correct? 1-The IRR is the discount rate which equates the present value of an investments expected costs to the present value of the expected cash inflows. 2-If the cost of capital for this investment is 9%, the investment should be rejected because its net present value will be negative.

1 only.

2 only.

Both 1 and 2.

Neither 1 nor 2.

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