Coffer Co is analyzing two projects for the future Assume that only one project can be selected If the company is using the payback period method and it requires a payback of three years or less, which project should be selected Project X Project Y Cost of machine $68,000 $60,000 Net cash flow Year 1 24,000 4,000 Year 2 24,000 26,000 Year 3 24,000 26,000 Year 4 0 20,000 a Both X and Y are acceptable projects b Project Y c Project X d Neither X nor Y is an acceptable project

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Question: Coffer Co. is analyzing two projects for the future. Assume that only one project can be selected. If the company is using the payback period

Coffer Co. is analyzing two projects for the future. Assume that only one project can be selected. If the company is using the payback period method and it requires a payback of three years or less, which project should be selected?

	Project X	Project Y
Cost of machine	$68,000	$60,000
Net cash flow:
Year 1	24,000	4,000
Year 2	24,000	26,000
Year 3	24,000	26,000
Year 4	0	20,000

a. Both X and Y are acceptable projects.

b. Project Y.

c. Project X.

d. Neither X nor Y is an acceptable project.

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