Question
Cash Payback Period Primera Banco is evaluating two capital investment proposals for a drive-up ATM kiosk, each requiring an investment of $438,000 and each with
Cash Payback Period
Primera Banco is evaluating two capital investment proposals for a drive-up ATM kiosk, each requiring an investment of $438,000 and each with an eight-year life and expected total net cash flows of $584,000. Location 1 is expected to provide equal annual net cash flows of $73,000, and Location 2 is expected to have the following unequal annual net cash flows:
| Year 1 | $158,000 |
| Year 2 | 114,000 |
| Year 3 | 74,000 |
| Year 4 | 57,000 |
| Year 5 | 35,000 |
| Year 6 | 70,000 |
| Year 7 | 48,000 |
| Year 8 | 28,000 |
Determine the cash payback period for both location proposals.
| Location 1 | years |
| Location 2 | years |
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Advanced Digital Auditing Theory And Practice Of Auditing Complex Information Systems And Technologies
Authors: Egon Berghout, Rob Fijneman, Lennard Hendriks, Mona De Boer, Bert-Jan Butijn
1st Edition
3031110889, 978-3031110887
