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Proposals L and K each cost $600,000, have 6-year lives, and have expected total cash flows of $720,000. Proposal L is expected to provide equal
Proposals L and K each cost $600,000, have 6-year lives, and have expected total cash flows of $720,000. Proposal L is expected to provide equal annual net cash flows of $170,000, while the net cash flows for Proposal K are as follows:
Year 1 $250,000
Year 2 200,000
Year 3 100,000
Year 4 50,000
Year 5 100,000
Year 6 20,000
total $720,000
Determine the cash payback period for each proposal. Round your answers to two decimal places, if necessary.
Proposal L ?? years
Proposal K ?? years
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