Question: 4. Two new software projects are proposed to a young, start-up company. The Alpha project will cost $150,000 to develop and is expected to have

4. Two new software projects are proposed to a young, start-up company. The Alpha project will cost $150,000 to develop and is expected to have annual net cash flow of $40,000. The Beta project will cost $200,000 to develop and is expected to have annual net cash flow of $50,000. The company is very concerned about their cash flow. Using the payback period, which project is better from a cash flow standpoint? Why? Required: Show calculations for payback periods. 4a. Assume that the rate of inflation is 6%, use the Net Present Value (NPV), approach to calculate the NPV for both projects. Which project would you now recommend? Why? Required: Show calculations for Net Present Values. 4b. In your estimation, which approach to select projects is better? Explain your response, giving the pros and cons of each approach. Required: You need to support your answer with arguments (explain your response). 4. Two new software projects are proposed to a young, start-up company. The Alpha project will cost $150,000 to develop and is expected to have annual net cash flow of $40,000. The Beta project will cost $200,000 to develop and is expected to have annual net cash flow of $50,000. The company is very concerned about their cash flow. Using the payback period, which project is better from a cash flow standpoint? Why? Required: Show calculations for payback periods. Payback (Alpha): I Payback (Beta) ANSWER (for 4) 4a. Assume that the rate of inflation is 6%, use the Net Present Value (NPV), approach to calculate the NPV for both projects. Which project would you now recommend? Why? Required: Show calculations for Net Present Values. NPV (Alpha) NPV (Beta) 1 ANSWER for da) 4b. In your estimation, which approach to select projects is better? Explain your response, giving the pros and cons of each approach Required: You need to support your answer with arguments (explain your response). ANSWER (for 4b) 1 REFERENCE: (If it is used, if you did any referencing). Use the APA style for it

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