QUESTION $2$

Project A would cost $$44,586\mathrm{.}00$ today and have the following other expected cash flows: $$28,622\mathrm{.}00$ in $1$ year, $$19,079\mathrm{.}00$ in $2$ years, $$5,162\mathrm{.}00$ in $3$ years, and $$2,942\mathrm{.}00$ in $4$ years. The cost of capital for project A is $12\mathrm{.}05$ percent. Project B would cost $$96,950\mathrm{.}00$ today and have the following other expected cash flows: $$56,231\mathrm{.}00$ in $1$ year, $$24,366\mathrm{.}00$ in $2$ years, $$27,138\mathrm{.}00$ in $3$ years, and $$2,786\mathrm{.}00$ in $4$ years. The cost of capital for project B is $7\mathrm{.}61$ percent Statement $1$: Project A would be accepted based on the project's internal rate of return $($IRR$)$ and the IRR rule Statement $2$: Project B would be accepted based on the project's payback period and the payback rule if the payback threshold is $2\mathrm{.}74$ years

Statement $1$ is true and statement $2$ is true

Statement $1$ is true and statement $2$ is false

Statement $1$ is false and statement $2$ is true

Statement $1$ is false and statement $2$ is false