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

Expected Cash Flows Cost of Capital

0 -$74,000 13%

1 $36,000

2 $22,000

3 $34,000

4 $7,000

- statement 1 F and statement 2 F

- statement 1 F and statement 2 T

- statement 1 T and statement 2 F

- statement 1 T and statement 2 T

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

Statement 2: XYZ would accept the project based on the project's payback period and thr payback rule if the payback threshold is 2.94 years