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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 $$550,000$ in a book and video store. She expects to receive a cash income of $$120,000$ per year from the investment.

b$.$ Carsen Nabors invested in a project that has a payback period of $4$ years. The project brings in $$960,000$ per year.

c$.$ Rahn Booth invested $$1,600,000$ in a project that pays him an even amount per year for $5$ years. The payback period is $2\mathrm{.}5$ years.

d$.$ Yolanda Ramirez has just invested $$1,600,000$ in a new biomedical technology. She expects to receive the following cash flows over the next $5$ years: $$350,000,$$$490,000,$$$800,000,$$$440,000,$ and $$360,000.$

What is the payback period for Colby? Round your answer to two decimal places. years

How much did Carsen invest in the project?

$

How much cash does Rahn receive each year?

$ per year

What is the payback period for Yolanda? Round your answer to one decimal place. years