Coffer Co. 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 of three years or less, which project(s) should be selected?

A) Project Y.

B) Project X.

C) Both X and Y are acceptable projects.

D) Neither X nor Y is an acceptable project.

E) Project Y because it has a lower initial investment.