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Cash payback period for a service company
Haukea Clothing Inc. is evaluating two capital investment proposals for a retail outlet, each requiring an investment of $125,000 and each with an eight-year life and expected total net cash flows of $200,000. Location 1 is expected to provide equal annual net cash flows of $25,000, and Location 2 is expected to have the following unequal annual net cash flows:
\table[[Year 1,$49,000,Year 5,$26,000
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