Question: Porter Co. is analyzing two projects for the future. Assume that only one project can be selected. Project X Project Y Cost of machine $

Porter Co. is analyzing two projects for the future. Assume that only one project can be selected.

Project X Project Y
Cost of machine $ 54,100 $ 62,800
Net cash flow:
Year 1 19,100 4,200
Year 2 19,100 27,400
Year 3 19,100 27,400
Year 4 0 21,000

The payback period in years for Project Y is:

a. 4.00

b. 3.18

c. 2.00

d. 3.82

e. 3.14

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