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Which assertion about statement 1 and statement 2 is true? Project A would cost 18,917 dollars today and have the following other expected cash flows:
Which assertion about statement 1 and statement 2 is true? Project A would cost 18,917 dollars today and have the following other expected cash flows: 3,428 dollars in 1 year, 5,868 dollars in 2 years, and 18,116 dollars in 4 years. The cost of capital for project A is 12.3 percent. Project B would cost 91,000 dollars today and have the following other expected cash flows: 26,600 dollars in 1 year, 24,800 dollars in 2 years, 113, 143 in 3 years, and 8,743 dollars in 4 years. The cost of capital for project B is 10.88 percent. Statement 1: Project A would be accepted based on the project's internal rate of return (IRR) and the IRR rule Statement 2: Project B would be accepted based on the project's payback period and the payback rule if the payback threshold is 2.4 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 1 is true and statement 2 is true
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