Cash Payback Period

Primera Banco is evaluating two capital investment proposals for a drive-up ATM kiosk, each requiring an investment of $117,000 and each with an eight-year life and expected total net cash flows of $312,000. Location 1 is expected to provide equal annual net cash flows of $39,000, and Location 2 is expected to have the following unequal annual net cash flows:

Year 1	$42,000
Year 2	30,000
Year 3	20,000
Year 4	15,000
Year 5	10,000
Year 6	94,000
Year 7	64,000
Year 8	37,000

Determine the cash payback period for both location proposals.

Location 1	___ years
Location 2	___ years