the project.

EX $12-5$ Cash payback period for a service company

Haukea Clothing Inc. is evaluating two capital investment proposals for a retail outlet, each re$-$

quiring 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.