Harrington, Inc. has identified the following mutually exclusive projects. The cash flows for Project X for years 0 through 4 are respectively: -$12,500, $4,000, $5,000, $6,000 and $1,000. For Project Y, the cash flows for years 0 through 4 are respectively: -$12,500, $1,000, $6,000, $5,000 and $4,000. The cost of capital is 9%. The company's stipulated payback period is 3.5 years. On the basis of payback, which of the following statements is correct?

Group of answer choices

Choose Project X because it has the quicker payback period.

Choose Project Y because it has the quicker payback period.

Choose Projects X and Y

Cannot decide given the information provided