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

2

3

-$77.000.00 $35.000.00 $21.000.00 $32.000.00 $5.000.00

15.20%

Statement 1: XYZ would accept the project based on the project's net present value and the NV rule.

Statement 2: XYZ would accept the project based on the project's payback period and the payback rule if the payback threshold is 2.08 years

O Statement 1 is true and statement 2 is true

O Statement 1 is true and statement 2 is false

O Statement 1 is false and statement 2 is false

O Statement 1 is false and statement 2 is true