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QUESTION 2 The following table presents information on a potential project currently being evaluated by XYZ. Which assertion about statement 1 and statement 2
QUESTION 2 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) 0 1 2 3 Cost of capital 4 12.17% -$74,000.00 $36,000.00 $21,000.00 $35,000.00 $8,000.00 Statement 1: XYZ would accept the project based on the project's net present value 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 2.89 years Statement 1 is false and statement 2 is true Statement 1 is true and statement 2 is true Statement 1 is true and statement 2 is false Statement 1 is false and statement 2 is false
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