Which assertion about statement 1 and statement 2 is true?

Project A would cost 17,775 dollars today and have the following other expected cash flows: 2,053 dollars in 1 year, 7,869 dollars in 2 years, and 11,093 dollars in 4 years. The cost of capital for project A is 6.14 percent. Project B would cost 67,000 dollars today and have the following other expected cash flows: 26,100 dollars in 1 year, 24,400 dollars in 2 years, 28,947 in 3 years, and 7,561 dollars in 4 years. The cost of capital for project B is 12.8 percent.

Statement 1: Project A would be accepted based on the projects internal rate of return (IRR) and the IRR rule

Statement 2: Project B would be accepted based on the projects payback period and the payback rule if the payback threshold is 2.53 years

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