17. The following table presents information on a potential project currently being evaluated by XYZ. Which assertion about statement 1 and statement 2 is true?

Expected cash flows (number of years from today):

0: -$79,000.00

1: $30,000.00

2: $24,000.00

3: $35,000.00

4: $9,000.00

Cost of capital: 10.87%

Statement 1: XYZ would accept the project based on the project's net present value and the NPV rule.

Statement 2: XYZ would accept the project based on the project's payback period and the payback rule if the payback threshold is 2.06 years

O Statement 1 is true and statement 2 is true

O Statement 1 is true and statement 2 is false

O Statement 1 is false and statement 2 is true

O Statement 1 is false and statement 2 is false