Payback Period Each of the following scenarios is independent. Assume that all cash flows are...
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Accounting
Payback Period
Each of the following scenarios is independent. Assume that all cash flows are after-tax cash flows.
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.
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.
Kam Turay invested in a project that has a payback period of 5 years. The project brings in $372,000 per year.
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
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