Are these statements correct:

Statement 1: If the present value of future residual income is positive, the stock is underpriced and you should recommend purchasing it.

Statement 2: EVA = NOPAT (C%TC), where EVA is economic value added, NOPAT is net operating profit after tax, and (C%TC) is the cost of capital times total capital.

		Both statements are correct
		Both statements are not correct
		Only Statement 1 is correct
		Only Statement 2 is correct