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
   -$68,000.00	$40,000.00	$17,000.00	$31,000.00	$9,000.00	11.31%

   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 2.50 years

   .

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