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Question 3.5- Payback Model Two new software projects are proposed to a young, start-up company. The Alpha project outflows (costs) are as follows, $70,000 (Year
Question 3.5- Payback Model Two new software projects are proposed to a young, start-up company. The Alpha project outflows (costs) are as follows, $70,000 (Year 0), and 20,000 (Years 1 to 4), a total of $150,000, and is expected to have annual cash inflows (benefits) of $40,000 (Years 0 to 4), a total of $200,000 The Beta project outflows (costs) are as follows, $80,000 (Year O), and 10,000 (Years 1 to 4), a total of $120,000, and is expected to have annual cash inflows (benefits) of $25,000, $20,000, $40,000, $45,000, and $10,000, a total of $140,000. 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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