Cash Payback Period Wyoming Woodworks is evaluating two capital investment proposals for a retail outlet...

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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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