Prime Financial Inc. is evaluating two capital investment proposals for a drive-up ATM kiosk, each requiring...

Prime Financial Inc. is evaluating two capital investment proposals for a drive-up ATM kiosk, each requiring an investment of $100,000 and each with an eight-year life and expected total net cash flows of $200,000. Location 1 is expected to provide equal annual net cash flows of $25,000, and Location 2 is expected to have the following unequal annual net cash flows:

Year 1	$45,000	Year 5	$24,000
Year 2	34,000	Year 6	18,000
Year 3	21,000	Year 7	14,000
Year 4	32,000	Year 8	12,000

Determine the cash payback period for both location proposals.

Location 1 1-8?	years
Location 2 1-8?	years

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orchestra answered 1 year ago

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