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Two new software projects are proposed to a young, start-up company. The Alpha project will cost $10,000 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?
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Project Management: The Managerial Process (Mcgraw-hill Series Operations and Decision Sciences)
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