=+E15-5 Cash payback period Obj 2

/ Proposal 1: 5 years First Union Bank Corporation is evaluating two capital investment proposals for a drive-up ATM kiosk, each requiring an investment of $300,000 and each with an eight-year life and expected total net cash flows of $480,000. Location 1 is expected to provide equal annual net cash flows of $60,000, and Location 2 is expected to have the following unequal annual net cash flows:

Year 1 $90,000 Year 5 $45,000 Year 2 80,000 Year 6 45,000 Year 3 65,000 Year 7 45,000 Year 4 65,000 Year 8 45,000