FINANCIAL ACCOUNTING
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ISBN: 9781259964947
Author: Libby
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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 $180,000 and each with an eight-year life and expected total net
| Year 1 | $81,000 | Year 5 | $43,000 | |
| Year 2 | 61,000 | Year 6 | 32,000 | |
| Year 3 | 38,000 | Year 7 | 25,000 | |
| Year 4 | 58,000 | Year 8 | 22,000 |
Determine the cash payback period for both location proposals.
| Location 1 | years |
| Location 2 | years |
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