37. Coffer Company is analyzing two potential investments.

Project X Project Y Cost of machine $ 77,000 $ 55,000 Net cash flow: Year 1 28,000 2,000 Year 2 28,000 25,000 Year 3 28,000 25,000 Year 4 0 20,000 If the company is using the payback period method, and it requires a payback period of three years or less, which project(s) should be selected