QUESTION 2 Porter Company is analyzing two potential investments. Project X Project Y Initial investment $ 93,720 $ 75,000 Net cash flow: Year 1 31,500 5,500 Year 2 31,500 33,500 Year 3 31,500 33,500 Year 4 0 30,000 If the company is us the payback period method, and it requires a payback of three years or less, which project(s) should be selected? Project X. Project Y Both X and Y are acceptable projects. Neither X nor Y is an acceptable project. Project Y because it has a lower initial investment. QUESTION 12 Lattimer Company had the following results of operations for the past year. Contribution margin income statement Per Unit Annual Total Sales (15,000 units) $ 12.00 $ 180,000 Variable costs Direct materials 1.50 22,500 Direct labor 4.00 60,000 Overhead 15,000 Contribution margin 5.50 82,500 Fixed costs Fixed overhead 1.00 15,000 Fixed selling and administrative expenses 1.40 21,000 Income $ 3.10 $ 46,500 1.00 A foreign company offers to buy 5,000 units at $7.50 per unit. In addition to variable costs, selling these units would add a $0.25 selling expense for export fees. Lattimer's annual production capacity is 25,000 units. If Lattimer accepts this additional business, the special order will yield a $8,250 loss. O $5,000 profit. 0 $3,750 profit O $3.250 loss. O $2,000 loss