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Cash Payback Periodi for a Service Company Janes Clothing inc. is evaluating two capital investment proposais for a retail outlet, each requiring an investment of
Cash Payback Periodi for a Service Company Janes Clothing inc. is evaluating two capital investment proposais for a retail outlet, each requiring an investment of $100,000 and each with an eight-year life and expected total net cash flows of $200,000. Location 1 is expected to provide equal annual ne cash flows of $25,000, and Location 2 is expected to have the following unequal annual net cash flows: Determine the cash paybock period for both location proposals. Location 1 years Location 2 years
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