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.)

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.)

Name: EX2-2 (Static) Two new software projects...Two new software projects
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Description: EX2-2 (Static) Two new software projects...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

Managerial Accounting: The Cornerstone of Business Decision-Making

7th Edition

ISBN:9781337115773

Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Chapter12: Capital Investment Decisions

Section: Chapter Questions

Problem 21BEA

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