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

A: Colby Hepworth has just invested $400,000 in a book and video store. She expects to receive a cash income of $120,000 per year from the investment.

B: Kylie Sorenson has just invested $1,400,000 in a new biomedical technology. She expects to receive the following cash flows over the next 5 years: $350,000, $490,000, $700,000, $420,000, and $280,000.

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 $1,300,000 in a project that pays him an even amount per year for the 5 years. The payback period is 2.5 years.

1: What is the payback period for Colby?

2: What is the payback period for Kylie?

3: How much did Carsen invest in the project?

4: How much cash does Rahn receive each year?