Determine the cash payback period for both location proposals.

Cash payback period for a Service Company Omni Financial Inc. is evaluating two capital investment proposals for a drive-up ATM kiosk, each requiring an investment of $225,000 and each with an 8-year life and expected total net cash flows of $360,000. Location 1 is expected to provide equal annual net cash flows of $45,000, and Location 2 is expected to have the following unequal annual net cash flows: Year 1 $88,000 Year 5 $47,000 Year 2 65,000 Year 6 38,000 Year 3 43,000 Year 7 27,000 Year 4 29,000 Year 8 23,000 Determine the cash payback period for both location proposals. Location 1 2 X years Location 2 5 % years Feedback Check My Work For Location 1, divide the initial cost by the annual net cash flow. For Location 2, start with year 1 and accumulate the net cash flows until the amount to be invested is reached