Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. payback period each of the following scenarios is

Payback Period Each of the following scenarios is independent. Assume that all cash flows are...

70.2K

Verified Solution

Question

Accounting

  1. Payback Period

    Each of the following scenarios is independent. Assume that all cash flows are after-tax cash flows.

    1. Kim Phyo has just invested $600,000 in a book and video store. She expects to receive a cash income of $120,000 per year from the investment.
    2. Kaylin Rostov has just invested $1,660,000 in a new biomedical technology. She expects to receive the following cash flows over the next 5 years: $350,000, $490,000, $830,000, $470,000, and $360,000.
    3. Kam Turay invested in a project that has a payback period of 5 years. The project brings in $372,000 per year.
    4. Chew Hann invested $1,350,000 in a project that pays him an even amount per year for 5 years. The payback period is 2.5 years.

    Required:

    1. What is the payback period for Kim? Round your answer to two decimal places. _______years

    2. What is the payback period for Kaylin? Round your answer to one decimal place. ______years

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

General Management
1.2K views

A food processor uses approximately 27,000 glass jars a month for its fruit juice product. Each...

Advance Math
1.2K views

How is the ratio of outputs to inputs, y x, different from the slope ratio? When a...

Biology
1.2K views

Examples of carbon offsets include O tree planting O solar energy production Owind energy production...

Physics
1.2K views

A plane sound wave is generated in a medium along the x axis whose equation...

Physics
1.2K views

In a transverse progressive wave of amplitude A the maximum particle velocity is four times...

Geometry
1.2K views

Justify the last two steps of the proof Given RS UT and RT US Prove...

Basic Math
1.2K views

Jason hired a luxury car service. The service charges a fixed rate of $4.92, regardless...

Statistics
1.2K views

1 Explanatory and Response Variables You have data on a large group of college students...

Calculus
1.2K views

Evaluate the integral x x 1 x 1 x 2 dx

Calculus
1.2K views

y 3x 6 Which of the following graphs does the equation most closely resemble OA...

Accounting
1.2K views

The Rainbow House Painting Company has been contracted to paint a house for $3,600. One-half...

Accounting
1.2K views

Solving for Unknowns Misterio Company uses a standard costing system. During the past quarter,the following...