Cash Payback Period Primera Banco is evaluating two capital investment proposals for a drive-up ATM...
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Cash Payback Period Primera Banco is evaluating two capital investment proposals for a drive-up ATM kiosk, each requiring an investment of $308,000 and each with an eight-year life and expected total net cash flows of $352,000. Location 1 is expected to provide equal annual net cash flows of $44,000, and Location 2 is expected to have the following unequal annual net cash flows:
Year 1 $120,000
Year 2 :89,000
Year 3 :59,000
Year 4 :40,000
Year 5 :15,000
Year 6 :12,000
Year 7 :9,000
Year 8 :8,000
Determine the cash payback period for both location proposals
Location 1
_____years
Location 2
_____ years
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