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 $$225,000$ and each with an eight$-$year life and expected total net cash flows of $$360,000.$ Location $1$ is expected to provide equal annual net cash flows of $$45,000,$ and Location $2$ is expected to have the following unequal annual net cash flows:

Year Amount Year Amount

Year $1$ $$101,000$ Year $5$ $$32,000$

Year $277,000$ Year $624,000$

Year $347,000$ Year $719,000$

Year $443,000$ Year $817,000$

Determine the cash payback period for both location proposals.

Location Year

Location $1$

years

Location $2$

years