1. 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
   -$84,000.00	$37,000.00	$22,000.00	$35,000.00	$4,000.00	10.61%

   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 2.00 years

   multiple choice choose one

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