Cash Payback Period Wyoming Woodworks is evaluating two capital investment proposals for a retail outlet...
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Accounting
Cash Payback Period
Wyoming Woodworks is evaluating two capital investment proposals for a retail outlet store, each requiring an investment of $1,013,000 and each with a five-year life and expected total net cash flows of $1,266,250. Location 1 is expected to provide equal annual net cash flows of $253,250, and Location 2 is expected to have the following unequal annual net cash flows:
Year 1
$405,000
Year 2
375,000
Year 3
233,000
Year 4
178,900
Year 5
74,350
Determine the cash payback period for both location proposals.
Location 1
years
Location 2
years
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