# Primera Banco is evaluating two capital investment proposals for a drive-up ATM kiosk, each requiring an investment

## Question:

Year 1 .......... $120,000

Year 2 ........... 90,000

Year 3 ........... 75,000

Year 4 ........... 75,000

Year 5 ........... 30,000

Year 6 ........... 30,000

Year 7 ........... 30,000

Year 8 ........... 30,000

Determine the cash payback period for both location proposals.

Payback Period

Payback period method is a traditional method/ approach of capital budgeting. It is the simple and widely used quantitative method of Investment evaluation. Payback period is typically used to evaluate projects or investments before undergoing them,...

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