Question: (5%) Proposals L and K each cost $500,000, have 6-year lives, and have expected total cash flows of $720,000. Proposal L is expected to provide

(5%) Proposals L and K each cost $500,000, have 6-year lives, and have expected total cash flows of $720,000. Proposal L is expected to provide equal annual net cash flows of $120,000, while the net cash flows for Proposal K are as follows:

Determine the cash payback period for eachproposal.

Cash flows Cumulative ear ear ear ear 4 ear eaf S250.000 200.000 100.000 90.000 60.000 20.000 $720.000 S250,000 450,000 550,000 640,000 700.000 720,000

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