1. Payback Period

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

   1. Kim Phyo has just invested $600,000 in a book and video store. She expects to receive a cash income of $120,000 per year from the investment.
   2. Kaylin Rostov has just invested $1,660,000 in a new biomedical technology. She expects to receive the following cash flows over the next 5 years: $350,000, $490,000, $830,000, $470,000, and $360,000.
   3. Kam Turay invested in a project that has a payback period of 5 years. The project brings in $372,000 per year.
   4. Chew Hann invested $1,350,000 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 Kim? Round your answer to two decimal places. _______years

   2. What is the payback period for Kaylin? Round your answer to one decimal place. ______years