Payback Period
Each of the following scenarios is independent. Assume that all cash flows are aftertax cash flows.
Colby Hepworth has just invested $ in a book and video store. She expects to receive a cash income of $ per year from the investment.
Kylie Sorensen has just invested $ in a new biomedical technology. She expects to receive the following cash flows over the next years: $ $ $ $ and $
Carsen Nabors invested in a project that has a payback period of years. The project brings in $ per year.
Rahn Booth invested $ in a project that pays him an even amount per year for years. The payback period is years.
Required:
What is the payback period for Colby? Round your answer to two decimal places.
What is the payback period for Kylie? Round your answer to one decimal place.
How much did Carsen invest in the project?
How much cash does Rahn receive each year?
