Net Cash Flow Determinations
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 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?





