Determine the cash payback period for each proposal

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Question - Proposals L and K each cost $600,000, have 6-year lives, and have expected total cash flows of $720,000. Proposal L is expected to provide equal annual net cash flows of $170,000, while the net cash flows for Proposal K are as follows:

Year 1 $250,000

Year 2 200,000

Year 3 100,000

Year 4 50,000

Year 5 100,000

Year 6 20,000

$720,000

Required - Determine the cash payback period for each proposal. Round your answers to two decimal places.

Reference no: EM132533593

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