Prime Financial Inc. is evaluating two capital investment proposals for a drive-up ATM kiosk, each requiring an investment of $200,000

Prime Financial Inc. is evaluating two capital investment proposals for a drive-up ATM kiosk, each requiring an investment of $200,000 and each with an eight-year life and expected total net cash flows of $320,000. Location 1 is expected to provide equal annual net cash flows of $40,000, and Location 2 is expected to have the following unequal annual net cash flows:

Year 1 $79,000
Year 2 60,000
Year 3 36,000
Year 4 34,000
Year 5 25,000
Year 6 19,000
Year 7 15,000
Year 8 12,000
Determine the cash payback period for both location proposals.

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