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

a. Emily Hansen has just invested $320,000 in a book and video store. She expects to receive a cash income of $96,000 per year from the investment.

b. Kaylin Day has just invested $700,000 in a new biomedical technology. She expects to receive the following cash flows over the next five years: $175,000, $245,000, $350,000, $210,000, and $140,000.

c. Kambry Nabors invested in a project that has a payback period of four years. The project brings in $192,000 per year.

d. Kenneth Booth invested $325,000 in a project that pays him an even amount per year for five years. The payback period is 2.5 years.

Required:

1. What is the payback period for Emily?

2. What is the payback period for Kaylin?

3. How much did Kambry invest in the project?

4. How much cash does Kenneth receive each year?