$19\mathrm{.}01$ Storage facility: Even cash flows of $$180,000$ per year

Car wash: $$112,800,$$$143,300,$$$68,000,$$$130,000,$ and $$95,000$

Required:

Calculate the payback period for the storage facility $($even cash flows$).$ Round your answer to one decimal place.

$$ years

Calculate the payback period for the car wash facility $($uneven cash flows$).$ Round your answer to three decimal places.

$x$ years

Which project should be accepted based on payback analysis?

Storage facilit'

What if a third mutually exclusive project, a laundry facility, became available with the same investment and annual cash flows of $$210,000?$

It has a shorter payback period and provides more cash flow over its life. $$

Now which project would be chosen?