Multiple Choice

• Project Y because it has a lower initial investment.

• Project X.

• Neither X nor Y is an acceptable project.

• Project Y.

• Both X and Y are acceptable projects.

Coffer Company is analyzing two potential investments. Cost of machine Net cash flow: Year 1 Year 2 Year 3 Year 4 Project X $ 88,740 34,000 34,000 34,000 0 Project Y $ 67,000 3,200 31,000 31,000 20,000 If the company is using the payback period method, and it requires a payback period of three years or less, which project(s) should be selected