- Business
- Operations Management
- two new internet site projects are proposed to a young...
Question: two new internet site projects are proposed to a young...
Question details
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. Using the payback period, which project is better, from a cash flow standpoint?
Solution by an expert tutor
