The following table presents information on a potential project currently being evaluated by XYZ. Which...
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Finance
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 -$76,000.00 $35,000.00 $23,000.00 $31,000.00 $6,000.00 10.75%
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 2.27 years .
Statement 1 is true and statement 2 is false
Statement 1 is false and statement 2 is true
Statement 1 is false and statement 2 is false
Statement 1 is true and statement 2 is true
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