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0 1 2 3 The following table presents information on a potential project currently being evaluated by XYZ. Which assertion about statement 1 and statement

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0 1 2 3 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) 4 -59,000 Cost of capital 31.000 14,000 21.000 2,000 12.7% Statement 1: XYZ would accept the project based on the project's net present value (NPV) and the NPV rule Statement 2: XYZ would accept the project based on the project's payback period and the payback rule if the payback threshold is 2.55 years Statement is true and statement 2 is true Statement 1 is true and statement 2 is false Statement 1 is false and statement 2 is true Statement is false and statement 2 is false The internal rate of return is that discount rate that equates the present value of the cash outflows (or costs) with the present value of the cash inflows. True False

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