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	1	2	3	4
-$85,000.00	$39,000.00	$21,000.00	$32,000.00	$7,000.00	14.85%

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 2.56 years

.

A.		Statement 1 is false and statement 2 is true
B.		Statement 1 is true and statement 2 is false
C.		Statement 1 is false and statement 2 is false
D.		Statement 1 is true and statement 2 is true