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EX 12.5 Cash payback period for a service company Obj. 2 Haukea Clothing Inc. is evaluating two capital investment proposals for a retail outlet, each

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EX 12.5 Cash payback period for a service company Obj. 2 Haukea Clothing Inc. is evaluating two capital investment proposals for a retail outlet, each requiring an investment of $980,000 and each with a 7-year life and expected total net cash flows of $1,225,000. Location 1 is expected to provide equal annual net cash flows of $175,000, and Location 2 is expected to have the following unequal annual net cash flows: Determine the cash payback period for both location proposals

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