- Payback Period Each Of The Following Scenarios Is Independent Assume That All Cash Flows Are After Tax Cash Flows A C 1 (52.72 KiB) Viewed 9 times
Payback Period Each of the following scenarios is independent. Assume that all cash flows are after-tax cash flows. a. C
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Payback Period Each of the following scenarios is independent. Assume that all cash flows are after-tax cash flows. a. C
Payback Period Each of the following scenarios is independent. Assume that all cash flows are after-tax cash flows. a. Colby Hepworth has just invested $525,000 in a book and video store. She expects to receive a cash income of $120,000 per year from the investment. b. Kylie Sorensen has just invested $1,560,000 in a new biomedical technology. She expects to receive the following cash flows over the next 5 years: $350,000, $490,000, $780,000, $430,000, and $350,000. c. Carsen Nabors invested in a project that has a payback period of 4 years. The project brings in $960,000 per year. d. Rahn Booth invested $1,550,000 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 Colby? Round your answer to two decimal places. 4.38 ✓ years 2. What is the payback period for Kylie? Round your answer to one decimal place. years 3. How much did Carsen invest in the project? $ 4. How much cash does Rahn receive each year? per year