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 $175,000 and each with an eight-year life and expected total net cash flows of $280,000. Location 1 is expected to provide equal annual net cash flows of $35,000, and Location 2 is expected to have the following unequal annual net cash flows: Year 1 $79,000 Year 5 $25,000 Year 2 60,000 Year 6 19,000 Year 3 36,000 Year 7 15,000 Year 4 34,000 Year 8 12,000 Determine the cash payback period for both location proposals. Location 1 years Location 2 years Average Rate of Return-Cost Savings Midwest Fabricators Inc. is considering an investment in equipment that will replace direct labor. The equipment has a cost of $139,000 with a $12,000 residual value and a five-year life. The equipment will replace one employee who has an average wage of $55,470 per year. In addition, the equipment will have operating and energy costs of $13,460 per year. Determine the average rate of return on the equipment, giving effect to straight-line depreciation on the investment. If required, round to the nearest whole percent. %