Haukea Clothing Inc. is evaluating two capital investment proposals for a retail outlet, each requiring 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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Year 1 Year 2 Year 3 Year 4 $175,000 180,000 200,000 225,000 Year 5 Year 6 Year 7 $200,000 150,000 95,000