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QUESTION 3 The following table presents information on a potential project currently being evaluated by Abuela Pastries. Which of the assertions about statement 1 and
QUESTION 3 The following table presents information on a potential project currently being evaluated by Abuela Pastries. Which of the assertions about statement 1 and statement 2 is true? Expected cash flows number of years from today) 1 2 3 4 Cost of capital -356000 $28,000 $24,000 $19,000 $4000 16.20% Statement 1: Abuela Pastries would accept the project based on the project's internal rate of return (RR) and the IRR rule Statement 2: Abuela Pastries would accept the project based on the project's payback period and the payback rule if the payback threshold is 2.30 years a. Statement is true and statement 2 is true b. Statement is true and statement 2 is false c. Statement is false and statement 2 is true d. Statement is false and statement 2 is false
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