Question: Which assertion about statement 1 and statement 2 is true? Project A would cost 13,702 dollars today and have the following other expected cash flows:

 Which assertion about statement 1 and statement 2 is true? Project

Which assertion about statement 1 and statement 2 is true? Project A would cost 13,702 dollars today and have the following other expected cash flows: 2,107 dollars in 1 year, 7,356 dollars in 2 years, and 11,328 dollars in 4 years. The cost of capital for project A is 12.76 percent. Project B would cost 16,619 dollars today and have the following other expected cash flows: 2,296 dollars in 1 year, 5,313 dollars in 3 years, and 13,327 dollars in 4 years. The cost of capital for project B is 7.52 percent. Statement 1: Project A would be accepted based on the project's net present value (NPV) and the NPV rule Statement 2: Project B would be accepted based on the project's 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 true and statement 2 is false Statement 1 is false and statement 2 is true

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