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)					Cost of capital
0	1	2	3	4
-$67,000.00	$34,000.00	$19,000.00	$35,000.00	$5,000.00	14.52%

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 3.22 years

Statement 1 is false and statement 2 is true

Statement 1 is true and statement 2 is false

Statement 1 is false and statement 2 is false

Statement 1 is true and statement 2 is true