Cash Payback Period for a Service Company Chinook Industries 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: Year 1 $56,000 Year 2 43,000 Year 3 26,000 Year 4 24,000 Year 5 18,000 Year 6 14,000 Year 7 11,000 Year 8 8,000 Determine the cash payback period for both location proposals. Location 1 years years Location 2