Question
Primera Banco is evaluating two capital investment proposals for a drive-up ATM kiosk, each requiring an investment of $228,000 and each with an eight-year life
Primera Banco is evaluating two capital investment proposals for a drive-up ATM kiosk, each requiring an investment of $228,000 and each with an eight-year life and expected total net cash flows of $304,000. Location 1 is expected to provide equal annual net cash flows of $38,000, and Location 2 is expected to have the following unequal annual net cash flows:
| Year 1 | $82,000 |
| Year 2 | 59,000 |
| Year 3 | 39,000 |
| Year 4 | 30,000 |
| Year 5 | 18,000 |
| Year 6 | 36,000 |
| Year 7 | 25,000 |
| Year 8 | 15,000 |
Determine the cash payback period for both location proposals.
| Location 1 | years |
| Location 2 | years |
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Atomic Audit The Costs And Consequences Of US Nuclear Weapons Since 1940
Authors: Stephen I. Schwartz
1st Edition
0815777736, 978-0815777731
