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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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