Cash payback period for a Service Company

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	$78,000		Year 5	$42,000
Year 2	58,000		Year 6	34,000
Year 3	38,000		Year 7	24,000
Year 4	26,000		Year 8	20,000

Determine the cash payback period for both location proposals.

Location 1	years
Location 2	years