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Cash Payback Period for a Service Company Chinook Industries Inc. is evaluating two...

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Accounting

Cash Payback Period for a Service Company
Chinook Industries Inc. is evaluating two capital investment proposals for a retail outlet, each requiring an investment of $150,000 and each with an eight-year life and expected total net cash flows of $240,000. Location 1 is expected to provide equal annual net cash flows of $30,000, and Location 2 is expected to have the following unequal annual net cash flows:
Year 1 $59,000
Year 244,000
Year 329,000
Year 418,000
Year 531,000
Year 625,000
Year 718,000
Year 816,000
Determine the cash payback period for both location proposals.
Location 1
years
Location 2
years

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