Two new Internet site projects are proposed to a young start-up company. Project A will cost $250,000 to implement and is expected to have annual net cash flows of $75,000. Project B will cost $150,000 to implement and should generate annual net cash flows of $52,000. The company is very concerned about their cash flow. (interest rate i =15%)

a) What is your selection based on Simple Payback Method?

b) What is your selection based on DCF?

c) If the Annual benefits decreased by 10%, would your selection be the same?