A numerical analysis of vertical ascending annular flow with the 1D Two-Fluid model is performed. It is well known that, in vertical flows, the resulting system of equations is unconditionally ill-posed in the absence of stabilizing mechanisms. Therefore, in the present work, to render the system of equations well-posed, modeling of dynamic pressure is included in the momentum equations. Two models available in the literature are examined. The first one only considers the dynamic pressure in the liquid momentum equation, which is based on a simple expression for the interface wave velocity. The second model includes a dynamic pressure contribution to both momentum equations. A third model is proposed based on the first, with a more realistic estimation of the interface wave velocity. A systematic grid convergence test is performed to demonstrate the stabilizing effect of the dynamic pressure. The conservation equations are discretized with the finite volume method, with a first order time integration, and a second order TVD spatial discretization. A grid-independent solution can be found when applying the second and third models considered. Flow parameters such as pressure drop, film thickness and wave characteristics numerically obtained are compared against available experimental data, presenting good agreement.