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Cash payback period for a Service Company Prime Financial Inc. evaluating two capital investment proposals for a drive-up ATM kiosk, each requiring an investment of

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Cash payback period for a Service Company Prime Financial Inc. evaluating two capital investment proposals for a drive-up ATM kiosk, each requiring an investment of $160,000 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 nows of $40,000, and Location 2 is expected to have the following unequal annual net cash flows: Year 1 $72,000 Year 5 $38,000 Year 2 54.000 Year 6 29,000 Year 34,000 Year 27,000 51.000 Year 20,000 Determine the cash paytack period for both location proposals Location years Year 4 Location 2

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