Cash payback period for a Service Company Prime Financial Inc. is evaluating two capital investment proposals for a drive-up ATM kiosk, each requiring an investment of $120,000 and each with an...


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Cash payback period for a Service Company<br>Prime Financial Inc. is evaluating two capital investment proposals for a drive-up ATM kiosk, each requiring an investment of $120,000 and each with an eight-year life<br>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<br>unequal annual net cash flows:<br>Year 1<br>$54,000<br>Year 5<br>$29,000<br>Year 2<br>41,000<br>Year 6<br>22,000<br>Year 3<br>25,000<br>Year 7<br>17,000<br>Year 4<br>38,000<br>Year 8<br>14,000<br>Determine the cash payback period for both location proposals.<br>Location 1<br>years<br>Location 2<br>years<br>

Extracted text: Cash payback period for a Service Company Prime Financial Inc. is evaluating two capital investment proposals for a drive-up ATM kiosk, each requiring an investment of $120,000 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 $54,000 Year 5 $29,000 Year 2 41,000 Year 6 22,000 Year 3 25,000 Year 7 17,000 Year 4 38,000 Year 8 14,000 Determine the cash payback period for both location proposals. Location 1 years Location 2 years

Jun 04, 2022
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