Each of the following parts is independent. Assume all cash flows are after-tax cash flows.
1. Kaylin Hansen has just invested $200,000 in a book and video store. She expects to receive a cash income of $60,000 per year from the investment. What is the ayback period for Kaylin?
2. Kambry Day has just invested $500,000 in a new biomedical technology. She expects to receive the following cash flows over the next five years: $125,000, $175,000, $250,000, $150,000, and $100,000. What is the payback period?
3. Emily Nabors invested in a project that has a payback period of 3 years. The project brings in $120,000 per year. How much did Emily invest in the project?
4. Joseph Booth invested $250,000 in a project that pays him an even amount per year for five years. The payback period is 2.5 years. How much cash does Joseph receive each year?