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

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QUESTION 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) O 2 3 4 Cost of capital -98.000 41.000 31.000 39.000 15.000 12.1% 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 2.60 years Statement 1 is false and statement 2 is false Statement 1 is false and statement 2 is true Statement 1 is true and statement 2 is false Statement is true and statement 2 is true

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