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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
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 casn flows number or years from today
Cost of capital
-$72,000.00 $40,000.00 $18,000.00 $33,000.00 $8,000.00
11.14%
Statement 1: XYZ would accept the project based on the project's net present value and the NV rule.
Statement 2: XYZ would accept the project based on the project's payback period and the payback rule if the payback threshold is 2.50 years
O Statement 1 is true and statement 2 is false
O Statement 1 is true and statement 2 is true
O Statement 1 is false and statement 2 is false
0 Statement 1 is false and statement 2 is true
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