the project. EX 12-5 Cash payback period for a service company Haukea...

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the project.
EX 12-5 Cash payback period for a service company
Haukea Clothing Inc. is evaluating two capital investment proposals for a retail outlet, each re-
quiring an investment of $980,000 and each with a 7-year life and expected total net cash flows
of $1,225,000. Location 1 is expected to provide equal annual net cash flows of $175,000, and
Location 2 is expected to have the following unequal annual net cash flows:
Determine the cash payback period for both location proposals.
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