2

Prime Financial Inc. is evaluating two capital investment proposals for a drive-up ATM kiosk, each requiring an investment of $200,000 and each with an eight-year life and expected total net cash flows of $320,000. Location 1 is expected to provide equal annual net cash flows of $40,000, and Location 2 is expected to have the following unequal annual net cash flows:

Year 1	$90,000		Year 5	$29,000
Year 2	68,000		Year 6	22,000
Year 3	42,000		Year 7	17,000
Year 4	38,000		Year 8	14,000

Determine the cash payback period for both location proposals.

Location 1	years
Location 2	years