Cash Payback Period

Wyoming Woodworks is evaluating two capital investment proposals for a retail outlet store, each requiring an investment of $1,000,000 and each with a five-year life and expected total net cash flows of $1,250,000. Location 1 is expected to provide equal annual net cash flows of $250,000, and Location 2 is expected to have the following unequal annual net cash flows:

Year 1	$400,000
Year 2	375,000
Year 3	225,000
Year 4	175,000
Year 5	75,000

Determine the cash payback period for both location proposals.

Location 1	__________years
Location 2	__________years