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 $150,000 and each with an eight- year life and expected total net cash flows of $240,000. Location 1 is expected to provide equal annual net cash flows of $30,000, and Location 2 is expected to have the following unequal annual net cash flows: Year 1 $59,000 Year 5 $31,000 Year 2 44,000 Year 6 25,000 Year 3 29,000 Year 7 18,000 Year 4 18,000 Year 8 16,000 Determine the cash payback period for both location proposals. Location 1 5 years Location 2 4 years