Yarber, Inc. is analyzing two different investments, Investment X and Investment Y. Assume that each require an initial investment of $6,500 and that the following cash flows are generated:

Year . Investment X . Investment Y

1 . $1,000 $1,300

2 . 1,800 2,000

3 . 1,700 1,100

4 . 2,000 1,500

5 600 Using the payback method, which of the following could be concluded?

Select one:

a. Investment X and Y provide the same payback period.

b. Neither investment is acceptable under the payback method.

c. Investment X should be selected.

d. Investment Y should be selected.