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)

Cost of capital

0

2

3

-$75.000.00 $34.000.00 $16,000.00 $31,000.00 $6,000.00

10.69%

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 3.81 years

O Statement 1 is true and statement 2 is false

O Statement 1 is true and statement 2 is true

O Statement 1 is false and statement 2 is true

O Statement 1 is false and statement 2 is false