Question: Two new software projects are proposed to a young, start - up company.The Alpha project will cost $ 1 5 0 , 0 0 0

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 an annual net cash flow of $

40, 000 .

The Beta project will cost $

200, 000

to develop and is expected to have an annual net cash flow of $

50, 000 .

The company is very concerned about their cash flow.Calculate the payback period for each project. Which project is better from a cash flow standpoint?

(

Round your answers to

2

decimal places.

)

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