Hilton Hotels is considering two alternative locations for a new hotel in Key West, Florida. One of the locations is near a beach, and the other location is directly on U. S. 1, the only highway into Key West. The following cash flows are associated with each alternative:

Beachfront location U. S 1 location

Year 1 $2,500,000 $1,000,000

Year 2 $1,000,000 $2,000,000

Year 3 $2,500,000 $5,000,000

Year 4 $3,500,000 $6,000,000

Year 5 $6,000,000 $5,000,000

Year 6 $10,000,000 $5,000,000

Year 7 $12,500,000 $4,000,000

Either hotel would cost $10,000,000 to build. Using the Cash payback method, which alternative should Hilton choose?