Which assertion about statement 1 and statement 2 is true?

Project A would cost 19,998 dollars today and have the following other expected cash flows: 3,983 dollars in 1 year, 7,670 dollars in 3 years, and 13,620 dollars in 4 years. The cost of capital for project A is 6.11 percent. Project B would cost 16,941 dollars today and have the following other expected cash flows: 2,942 dollars in 1 year, 6,526 dollars in 3 years, and 13,004 dollars in 4 years. The cost of capital for project B is 8.6 percent.

Statement 1: Project A would be accepted based on the projects net present value (NPV) and the NPV rule

Statement 2: Project B would be accepted based on the projects internal rate of return (IRR) and the IRR rule

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