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 et 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 concerned about their cash flow. Using the payback period, which project is better from a cash flow standpoint? Why? a. Assume that the rate of inflation is 6%, use the Net Present Value (NPV), approach to calculate the payback period for both project when prape would you now recommend? Why? b. In your estimation which approach to calculating payoack period is better? Explain your response piving the pros and cont of each anorach

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