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 $$500,000$ in a book and video store. She expects to receive a cash income of $$120,000$ per year from the investment.

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 $$1,500,000$ in a project that pays him an even amount per year for $5$ years. The payback period is $2\mathrm{.}5$ years.

Required:

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

$$ years

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

$x$ years

How much did Carsen invest in the project?

$$

How much cash does Rahn receive each year?

$$

$$ per year Margin, Turnover, Return on Investment, Average Operating Assets

Elway Company provided the following income statement for the last year:

At the beginning of last year, Elway had $$38,651,000$ in operating assets. At the end of the year, Elway had $$41,333,000$ in operating assets.

Required:

Compute average operating assets.

s

Compute the margin $($as a percent$)$ and turnover ratios for last year. If required, round your answers to two decimal places.

Margin

$\%$

Turnover

Compute ROI as a percent. Use the part $2$ final answers in these calculations and round the final answer to two decimal places.

$\%$