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Payback Period

Jan Booth is considering investing in either a storage facility or a car wash facility. Both projects have a five-year life and require an investment of $350,000. The cash flow patterns for each project are given below.

Storage facility: Even cash flows of $160,000 per year

Car wash: $112,500, $143,300, $68,000, $124,000, and $90,000

Required:

1. Calculate the payback period for the storage facility (even cash flows). Round your answer to one decimal place. fill in the blank 1 years

2. Calculate the payback period for the car wash facility (uneven cash flows). Round your answer to three decimal places. fill in the blank 2 years