Which one of the assertions about statement 1 and statement 2 is true? Project A would cost $96000 today and have the following other expected cash flows: $39000 in 2 years, $38000 in 3 years and $13000 in 4 years. The cost of capital for project A is 10.91 percent. Project B would cost $127000 today and have the following other expected cash flows: $52000 in 1 year, $44000 in 2 years, $39000 in 3 years and $7000 in 4 years. The cost of capital for project B is 12.72 percent.

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.