As the VP of Engineering of a young startup that sells tickets for major concerts and sporting events, your team has approached you about two new projects they would like start. Your budget can only afford one, so you must prioritize. In the first you must invest $50, 000, but will receive $10,000 in annual cash flow. In the second project you must double the upfront invest $100,000, but the annual cash flow will be $25,000. Since you do not have a lot of cash on hand, which option is a better choice from a cash flow perspective?

What other financial measurements should be used to assess the projects?

Using the payback period method, which project would you select for funding and why?