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

Expected cash flows (number of years from today)

0

1

2

3

4

Cost of capital

-$98,000

$65,000

$25,000

$26,000

$3,000

12.90%

Statement 1: XYZ would accept the project based on the projects internal rate of return (IRR) and the IRR rule Statement 2: XYZ would accept the project based on the projects payback period and the payback rule if the payback threshold is 2.20 years

	a.	Statement 1 is true and statement 2 is true
	b.	Statement 1 is true and statement 2 is false
	c.	Statement 1 is false and statement 2 is true
	d.	Statement 1 is false and statement 2 is false