The following table presents information on a potential project currently being evaluated by Mindys Mending. Which assertion about statement 1 and statement 2 is true?

Expected cash flows (number of years from today)					Cost of capital
0	1	2	3	4
-59,000	31,000	21,000	14,000	7,000	12.7%

Statement 1: Mindys Mending would accept the project based on the projects net present value (NPV) and the NPV rule

Statement 2: Mindys Mending would accept the project based on the projects payback period and the payback rule if the payback threshold is 2.55 years