At which stage of the business cycle would the economy be at when GDP begins to rise and the unemployment rate begins to fall?
A)
Peak
B)
Contraction
Trough
D)
Expansion

Answers

Answer 1

Answer: A - peak

Explanation:

Just took the test the other answer is wrong!!!


Related Questions

1. Merage Company is considering investing in a new project. The project will need an initial investment of $2,100,000 and will generate $1,200,000 (after-tax) cash flows for three years. Calculate the IRR for the project.2. Calculate the payback period:C0 = -2000, C1 = +600, C2 = +1400 and C3 = +5000A. Three yearsB. One year.C. Two years.D. None of the above.

Answers

Answer:

1. 32.68%

2 .C. Two years

Explanation:

1. Using Excel or a scientific calculator, you can calculate the IRR which is the discount rate that makes the Net Present Value to equal $0.

= IRR(-2100000,1200000,1200000,1200000)

= 32.68%

2. The Payback period is how long it takes for the cash inflows to pay off the original investment.

Original Investment = -$2,000

After year 1 = -2,000 + 600 = -$1,400

After year 2 = -1,400 + 1,400 = $0

It took 2 years to payback the original investment so Two years is the Payback period.

Which option, within the Word Options dialog box, allows users to add the Auto Text function to the Ribbon?

Answers

(B) coustmize ribbon

The customize ribbons option in Word Options dialog box, allows users to add the Auto Text function to the Ribbon.

What is Auto Text function ?

To save portions of a Word document for later use, utilize AutoText. For example, you could retain a convenient collection of headers and footers or build a library of sentences for business letters. Everything a Word document can contain, including formatted text, images, and fields, can be stored in an AutoText entry.

You can quickly speed up document creation using AutoText by adding predetermined text to your project.

In your Office applications, you can create and organize tabs and commands in the ribbon however you choose. Show or conceal the ribbon. Select the at the ribbon's right edge to make it invisible. Choose a tab to reveal the ribbon.

To learn more about customize ribbons

https://brainly.com/question/27608833

#SPj2

According to the video, what do Financial Analysts analyze? Check all that apply.
financial records
travel distances
insurance claims
a company's competitors
fraud

Answers

A-D

-financial records

-a company’s competitors

Answer:

Financial Records

A Company’s Competitors

Explanation:

I got it right on edge 2020 hope this helps!

The Extreme Reaches Corp. last paid a $1.50 per share annual dividend. The company is planning on paying $3.00, $5.00, $7.50, and $10.00 a share over the next four years, respectively. After that the dividend will be a constant $2.50 per share per year forever. A) What is the market price of this stock if the market rate of return is 15 percent? Also estimate the dividend yield over the first year.
B) Continue from the previous problem. What is the market price of this stock in one year? What is the capital gains yield over the first year?
Im looking for help on part B, I have already completed part A but it would be helpful to check my answer. ($26.57/share)

Answers

Answer:

a)

Div₁ = $3

Div₂ = $5

Div₃ = $7.50

Div₄ = $10

Div₅ = $2.50

the terminal value at year 4 = $2.50 / 15% = $16.67

P₀ = $3/1.15 + $5/1.15² + $7.50/1.15³ + $26.67/1.15⁴ = $2.61 + $3.78 + $4.93 + $15.25 = $26.57

dividend yield over the first year = $3 / $26.57 = 11.29%

b)

P₁ = $5/1.15 + $7.50/1.15² + $26.67/1.15³ = $4.35 + $5.67 + $17.47 = $27.49

capital gains yield = ($27.49 - $26.57) / $26.57 = 3.46%

The CECL model:_______.A. Is a good example of an income-statement approach to estimating bad debts. B. Recognizes bad debts when it is probable that an economic sacrifice has occurred. C. Considers historical experience but not forecasts of the future. D. Allows a company to use an accounts receivable aging as part of its methodology for estimating credit losses.

Answers

Answer:

The correct answer is the option D: Allows a company to use an account receivable aging as part of its methodology for estimating credit losses.

Explanation:

To begin with, the name of "Current Expected Credit Losses" in the field of business and accounting refers to an specific model used by the companies that was issued by the Financial Accounting Standards Board and its main purpose is to focus on estimation of expected losses according to the complete life of the loan. So therefore that this model allows the companies to use an accounts receivable aging ar part of its methodology for estimating the credit losses. And that is also why this system has had an important impact in the financial institutions of the United States of America.

Petter Jansen purchased 100 shares each in Sygnette and Joey Stores a year ago. He paid $62.85 and $121.15 per share respectively. He sold Sygnette today for $59.80. He received a dividend fromJoey Stores of $1.60 and alsosold the stock today for $127.35 per share. Petter's return for the portfolio is:'_______

Answers

Answer:

2.58%

Explanation:

holding period return (HPR) = [(ending value - initial value) + dividends received] / initial value

initial value of Petter's portfolio = (100 x $62.85) + (100 x $121.15) = $18,400ending value = (100 x $59.80) + (100 x $127.35) = $18,715dividends received = 100 x $1.60 = $160

HPR = [($18,715 - $18,400) + $160] / $18,400 = $475 / $18,400 = 0.0258 = 2.58%

Companies often use features to differentiate themselves from competitors. However, a company must balance the features customers want with ________.
A) what the competition offers
B) the ability to manufacture the feature in a timely way
C) what customers will pay
D) the configurations that make a positive brand look stylish
E) the resources available for production

Answers

Answer:

C)what customers will pay

Explanation:

Click this link to view O*NET's Work Context section for Electrical Power-Line Installers and Repairers. Note that
common contexts are listed toward the top, and less common contexts are listed toward the bottom. According to
O*NET, what are some common work contexts for Electrical Power-Line Installers and Repairers? Check all that
apply.
✓ frequency of decision making
X exposed to disease or infections
outdoors, exposed to weather
wear common protective or safety equipment
face-to-face discussions
x outdoors, under cover
Answer 1,3,4,5

Answers

Answer:

That's right

Explanation:

edge2020

Answer:

the answer is above me i did the unit test on edge 2021

Explanation:

am i the brainlest

10. The strategy that will not help reduce selection bias is: a. development of an explicit case definition b. the use of incentives to encourage high participation c. a standardized protocol for structured interviews d. enrollment of all cases in a defined time and region

Answers

Answer:

c. a standardized protocol for structured interviews

Explanation:

The strategy that will help reduce selection bias are:

a. development of an explicit case definition

b. the use of incentives to encourage high participation

c. enrollment of all cases in a defined time and region

Hence, the strategy that will not help reduce selection bias is a standardized protocol for structured interviews.

Jolly Giant Burgers purchased a commercial dishwasher by paying cash of $8,000. The dishwasher's fair value on the date of the purchase was $10,000. The company incurred $600 in transportation costs, $500 installation fees, and paid $300 annual insurance on the equipment. For what amount will Jolly Giant Burgers record the dishwasher?

Answers

Answer:

$9,100

Explanation:

Calculation for what amount will Bahama record the dishwasher

Using this formula

Amount to record

dishwasher=Cash+Transportation costs+Installation fees

Let plug in the formula

Amount to record dishwasher=$8,000 + $600 + $500

Amount to record dishwasher = $9,100

Therefore the Amount to record dishwasher will be $9,100

can yall plz help me with this science qustion the choses are masses,shapes,and sizes ....also ill give brainlest

Answers

Answer:

the answer is the mass.

Answer:

the answer is the mass

the answer is the mass

​In the market for used cars we have 10 sellers, willing to sell at the prices of $1000, $2000, $3000, $4000, $5000, $6000, $7000, $8000, $9000, $10000. What could the market price be in order to induce five sellers to offer their cars for sale?

Answers

Answer: $5001

Explanation:

It should be noted that sellers always seek to maximize profit when selling a product, therefore a seller will only be induced to sell only when offered a price that is above the price that they want to sell the car.

Therefore, we have to consider the price that is being offered by the seller as the minimum price. There are five sellers that wants to sell the car at prices of $1000, $2000, $3000, $4000, and $5000. Therefore, to sell the car a price of $5001 would induce the five sellers to offer their cars for sale.

Speedy's, a fast food facility, offers products at lower prices than its competitors in the market and has a drive-through-only operation with no indoor seating. What strategy is Speedy's using to gain competitive advantage?A. A best-cost provider strategy B. A focused low-cost provider strategy C. A broad differentiation strategy D. A focused differentiation strategy E. A low-cost provider strategy

Answers

Answer:

The correct answer is the option B: A focused low-cost provider strategy.

Explanation:

To begin with, in the field of business and management this type of strategy known as "focused low-cost strategy" has the purpose to lower the cost of a product that is being sell in a niche market where the other competitors can not afford to lower much more the price so that will implicate that the first company who has the ability to do it will gain a competitive advantage. Moreover, the fact that the company has a drive-through-only operation will increase the fact that the consumers will have their food faster and not having to wait in line or lose any time, so all that will implicate that their are currently having an advantage over the competitors.

The demand curve for a monopolist differs from the demand curve faced by a competitive firm because the demand curve for: A. a monopolist lies below its marginal revenue curve. B. a monopolist is the market demand curve. C. a competitive firm is inelastic. D. a competitive firm lies above its marginal revenue curve.

Answers

Answer:

B. a monopolist is the market demand curve

Explanation:

As we know that the under monopoly market the firm and the industry are similar to each other also the monopolist determined the price due to this he is a price taker and price maker and the curve of the demand would be downward that shifted from left to right

Therefore in the given situation, the option B is correct

And the rest of the options are wrong

The following items are taken from the financial statements of Ivanhoe Company at December 31, 2022.

Land $197,900
Accounts receivable 22,000
Supplies 10,200
Cash 12,050
Equipment 82,100
Buildings 261,200
Land improvements 45,900
Notes receivable (due in 2023) 6,200
Accumulated depreciation—land improvements 12,700
Common stock 80,000
Retained earnings (December 31, 2022) 495,000
Accumulated depreciation—buildings 33,600
Accounts payable 9,800
Mortgage payable 91,900
Accumulated depreciation—equipment 18,950
Interest payable 3,400
Income taxes payable 15,500
Patents 46,700
Investments in stock (long-term) 71,300
Debt investments (short-term) 5,300

Required:
Prepare a classified balance sheet. Assume that $9,300 of the mortgage payable will be paid in 2023.

Answers

Answer:

                            Ivanhoe Company

                                Balance sheet

Particulars                  Amount           Amount

Assets

Current assets

Cash                               12,050

Account receivables     22,000

Supplies                          10,200

Debt investment             5300

Total current assets                                         49,550

Fixed assets

Land                                             197,900

Equipment                     82,100

Less acc. depreciation  (18,950)  

Net equipment                             63,150

Building                          261,200  

Less acc. depreciation   (33,600)  

Net building                                  227600

Land improvements       45,900  

Less acc. depreciation   (12,700)  

Net land improvements               33,200

Note receivables                           6,200

Patents                                           46,700

Investment in stock                        71,300

Total fixed assets                                              646,050

Total assets                                                        695,600

Liabilities and shareholders equity

Current liabilities

Account payable           9800  

Interest payable            3400  

Income tax payable       15,500  

Total current liabilities                   28,700

Long term liabilities

Mortgage payable          91,900

Total long term liabilities                        91,900

Shareholders equity

Common stock               80,000

Retained earnings          495,000

Total shareholders equity                        575,000

Total liabilities and shareholders equity$69,5600

Jeter Corporation had net income of $232,000 based on variable costing. Beginning and ending inventories were 8,000 units and 14,000 units, respectively. Assume the fixed overhead per unit was $6 for both the beginning and ending inventory. What is net income under absorption costing?a. $316,000b. $268,000c. $304,000d. $364,000e. $232,000

Answers

Answer:

d. $364,000

Explanation:

Net income under absorption costing is computed as;

= Net income under variable costing + [(Closing inventory - Opening inventory) × Fixed overhead per unit.

Given that;

Net income under variable costing = $232,000

Closing inventory = 14,000 units

Opening inventory = 8,000 units

Fixed overhead per unit = $6

Therefore,

Net income under absorption costing = $232,000 + [(14,000 + 8,000) × $6 ]

= $232,000 + $132,000

= $364,000

Net income under absorption costing is $364,000

Lerchman Corp sponsors a defined-benefit pension plan for its employees. The company's actuary has provided the following information for the year ended December 31, 2022:

Projected benefit obligation $730,000
Fair value of plan assets 860,000
Service cost 240,000
Interest on projected benefit obligation 24,000
Amortization of prior service cost 60,000
Expected and actual return on plan assets 82,500

The plan paid benefits of $150,000. The market-related asset value equals the fair value of plan assets. No contributions have been made for 2022 pension cost. In its December 31, 2022 balance sheet, Lerchman should report a pension asset / liability of

a. Pension liability of $730,000
b. Pension liability of $545,000
c. Pension asset of $130,000
d. Pension asset of $860,000

Answers

Answer:

c. Pension asset of $130,000

Explanation:

Calculation for what Lerchman should report as pension asset / liability in its December 31, 2022 balance sheet

Using this formula

Balance sheet Pension Asset = Fair value of plan assets 12/31/22- Projected benefit obligation 12/31/22

Let plug in the formula

Balance sheet Pension Asset= $860,000 - $730,000

Balance sheet Pension Asset = $130,000

Therefore In its December 31, 2022 balance sheet, Lerchman should report a pension asset of $130,000

Sunland Taxi Service uses the units-of-activity method in computing depreciation on its taxicabs. Each cab is expected to be driven 145,000 miles. Taxi 10 cost $29,500 and is expected to have a salvage value of $500. Taxi 10 was driven 32,000 miles in 2021 and 30,100 miles in 2022.

Answers

Answer:

see below

Explanation:

Under the unit of depreciation method, depreciation expense is per unit used.

The calculation of depreciation expense per unit is as per the formula.

DE per unit (Asset Cost − Salvage Value)​/ Estimated Production Output

For Tax 10:

=($29,500- $500 ) /145,000 miles

= $29,000/145,000

=$0.2

The depreciation expense is $0.2 per mile.

Depreciation for 2021 will be depreciation per mile multiplied by miles driven.

=32,000 x $0.2

=$6,400

Depreciation for 2022

=30100 x $0.2

=$6,020

A new raw material is available that will decrease the variable costs per unit by 20% (or $2.80). However, to process the new raw material, fixed operating costs will increase by $90,000. Management feels that one-half of the decline in the variable costs per unit should be passed on to customers in the form of a sales price reduction. The marketing department expects that this sales price reduction will result in a 5% increase in the number of units sold.

Required:
a. Prepare a projected CVP income statement for 2020, assuming the changes have not been made.
b. Prepare a projected CVP Statement 2020, assuming that changes are made as described.

Answers

Answer:

Missing words "Carey Company had sales in 2016 of $1,586,000 on 61,000 units. Variable costs totaled $854,000, and fixed costs totaled $450,000"

a. Particulars            Total Amount($)   Per Unit in ($)

Sales                          1,586,000                   26

Less: Variable cost    854,000                     14

Contribution Margin  732,000                      12

Less: Fixed cost         450,000                      -

Profit                           282,000

b. Sales = 61000 + 5% = 61000 + 3050 =  64050 units

Sales price = $26 - ($2.8/2) $1.4 = $24.6

Variable price = $14 - $2.8 = $11.2

Fixed cost = 450000 + 90000 = 540000

Particulars            Total Amount($)   Per Unit in ($)

Sales                          1,575,630                   24.6

Less: Variable cost     717,360                      11.2

Contribution Margin  858,270                      13.4

Less: Fixed cost         540,000                      -

Profit                           318,270

With this new plan, the profit increases by $26,270 ($318,270 - $282,000)

A share of corporate stock is __________.


tangible fungible private property


intangible public property


intangible private property


tangible public property

Answers

Answer:

Tangible public property

Wendy is a single taxpayer with adjusted gross income of $92,300 for tax year 2019. She has rental income of $55,000 and rental expenses of $80,000. What can Wendy report on her tax return given this situation?

a. She can deduct $10,000 because her rental expenses exceeded her rental income
b. She can deduct $15,000 because her rental expenses exceeded her rental income
c. She can deduct $25,000 because her rental expenses exceeded her rental income

Answers

Answer: c. She can deduct $25,000 because her rental expenses exceeded her rental income

Explanation:

You are allowed a deduction when your rent expenses exceeds your rent income by the amount that the rent expense exceeds your net income by however, this deduction is limited to a maximum of $25,000.

This only applies however if the tax payer's adjusted gross income for the year is less than $100,000 which it is in this case.

= Rental expense - rent income

= 80,000 - 55,000

= $25,000

She can deduct $25,000.

The correct option is c. She can deduct $25,000 because her rental expenses exceeded her rental income

The calculation is as follows:

 

= Rental expense - rent income

= 80,000 - 55,000

= $25,000

She can deduct $25,000.

Learn more: brainly.com/question/16911495

Rodriguez Company pays $342,225 for real estate with land, land improvements, and a building. Land is appraised at $250,000; land improvements are appraised at $75,000; and a building is appraised at $175,000.

Required:
a. Allocate the total cost among the three assets.
b. Prepare the journal entry to record the purchase.

Answers

Answer:

a. The cost of each of the assets will be proportional based on their individual costs.

Total individual costs = 250,000 + 75,000 + 175,000

= $500,000

Cost of land = 250,000/500,000 * 342,225 = $‭171,112.5‬0

Cost of land improvements = 75,000/500,000 * 342,225 = $‭51,333.75‬

Cost of building = 175,000/500,000 * 342,225 = $‭119,778.75‬

b.

DR   Land                                                       $171,112.50

       Land Improvements                              $51,333.75

       Building                                                  $119,778.75

       CR Cash                                                                        $342,225

Suppose currently, there is free trade with no government intervention. Suppose now the government in Econland wants to intervene in this market and bring widget prices back to the pre-trade free market price of F. What could they do achieve this?A. The government cannot do anything to bring widget prices back to FB. Set a quota on imports of LNC. Set a quota on imports of 0D. Tax imports by KRE. Tax imports by $0

Answers

Answer:

Tax imports by KRE

Explanation:

When there is complete, unregulated free trade in the economy, the price of widgets in any local economy is the same as the world price.

In this case, i the government in Econland wants to bring back the price of widgets, from world price, to previous domestic price, all it has to do is to impose a tax on imports equal to the value of the difference between the world price and the previous price. This tax on imports is known in economics as a tariff, and it is the most commonly tool of protectionist economic policy.

For example, suppose that the world price of widgets, under free trade is $2 each, and the previous price was $4, so in order to raise the price for world price to previous price, all the government has to do is to impose a tariff of $2, like this, widgets in the domestic market will be $4 again.

If there is free trade without the intervention of the government, the way that the government can intervene would be to Tax imports by KRE.

What is free trade?

This is the type of trade in an economy where the government of the country would not intervene in the market.

In this market system, the government would not use tariffs on the exports or try to discriminate against imports in  the country.

Read more on free trade here: https://brainly.com/question/10608502

Sanders, Inc., paid a $4 dividend per share last year and is expected to continue to pay out 60% of its earnings as dividends for the foreseeable future. If the firm is expected to generate a 13% return on equity in the future, and if you require a 15% return on the stock, the value of the stock is _________.

Answers

Answer:

The correct solution is "$42.94".

Explanation:

The given values are:

D0 = 4

Ks = 15%

As we know,

⇒ [tex]g = (1-Div \ payout \ ratio)\times ROE[/tex]

      [tex]=(1-60 \ percent)\times 13 \ percent[/tex]

      [tex]=5.20 \ percent[/tex]

By using the Gordon Model, we get

⇒ [tex]P0=Do\times \frac{(1+g)}{(Ks-g)}[/tex]

         [tex]=4\times \frac{ (1+5.20 \ percent)}{(15 \ percent-5.20 \ percent)}[/tex]

         [tex]=42.94[/tex] ($)

Ivanhoe, Inc. estimates the cost of its physical inventory at March 31 for use in an interim financial statement. The rate of markup on cost is 20%. The following account balances are available: Inventory, March 1 $540000 Purchases 420000 Purchase returns 10000 Sales during March 720000 The estimate of the cost of inventory at March 31 would be

Answers

Answer:

$350,000

Explanation:

Cost of goods sold = $720,000 / 1.20

Cost of goods sold = $600,000

Estimated cost of inventory = Inventory, March 1 + (Purchases - Purchases Return) -  Cost of goods sold

Estimated cost of inventory = $540,000 + ($420,000 - $10,000) - $600,000

Estimated cost of inventory = $540,000 + $410,000 - $600,000

Estimated cost of inventory = $350,000

Suppose that the dollar-mark 6 months forward rate is $1.275/Mark. Suppose that the dollar-mark forward premium is 5%. Calculate the spot rate, $1=Mark_______ work to 4 decimal places.

Answers

Answer:

$1 = 0.8039 Mark

Explanation:

Forward Rate = Spot rate * (1 +rate*180/360)

1.275 = Spot rate * (1 + 0.05*180/360)

Spot rate = $1.2439/Mark

Now we are asked rate per dollar

$1 = (1/1.2439)Mark

$1 = 0.8039 Mark

Firm A has increased its EPS (Earnings per share) by increasing the weighting of debt in its capital structure, compared to competitor Firm B, which finances mainly through increased stock offerings. Firm A's EPS, relative to competitor firm B has improved because:________. A. Its value as a firm is greater B. Its number of shares outstanding is lower C. Its number of shares outstanding are lower, and its earnings after tax is higher D. Its net income is higher

Answers

Answer:

B. Its number of shares outstanding is lower

Explanation:

Earnings per share (EPS) = (net income - preferred dividends) / weighted average shares outstanding

there are two ways in which a company's EPS can be higher:

increase the numerator: increase net income, which is unlikely due to higher interest expensedecrease the denominator: firm A has fewer stocks outstanding. This is more likely to occur.

North Dakota Electric Company estimates its demand trend line​ (in millions of kilowatt​ hours) to​ be:


D​ = 80.0 ​+ 0.45​Q,


where Q refers to the sequential quarter number and Q​ = 1 for winter of Year 1. In​ addition, the multiplicative seasonal factors are as​ follows:


Quarter Factor​ (Index)

Winter 0.72

Spring 1.25

Summer 1.40

Fall 0.63


In year 26​ (quarters 101-104), the energy use for each of the quarters beginning with winter is ​(round your response to one decimal​ place):_______

Answers

Answer:

90.3 ; 157.4 ; 176.9 ; 79.9

Explanation:

Given that:

Estimated demand trend line (in millions of kilowatt hour) for North Dakota Electricity company is :

D​ = 80.0 ​+ 0.45​Q,

Q = quarter number

Quarter Factor​ (Index)

Winter 0.72

Spring 1.25

Summer 1.40

Fall 0.63

In year 26​ (quarters 101-104):

Energy use (E) for each quarter = (Demand * quarter factor)

Winter ; Q = 101

E = [80.0 ​+ 0.45​(101)] * 0.72 = 90.3

E = [80.0 ​+ 0.45​(102)] * 1.25 = 157.4

E = [80.0 ​+ 0.45​(103)] * 1.40 = 176.9

E = [80.0 ​+ 0.45​(104)] * 0.63 = 79.9

Puget Sound Divers is a company that provides diving services such as underwater ship repairs to clients in the Puget Sound area. The company’s planning budget for May appears below:
Puget Sound Divers
Planning Budget
For the Month Ended May 31
Budgeted diving-hours (q) 300
Revenue ($420.00q) $126,000
Expenses:
Wages and salaries ($11,100 + $124.00q) 48,300
Supplies ($3.00q) 900
Equipment rental ($2,100 + $22.00q) 8,700
Insurance ($4,000) 4,000
Miscellaneous ($520 + $1.42q) 946
Total expense 62,846
Net operating income $63,154
Required:
During May, the company’s actual activity was 290 diving-hours. Complete the flexible budget for that level of activity.

Answers

Answer:

$60,458

Explanation:

Calculation to Complete the flexible budget for that level of activity

FLEXIBLE BUDGET

Flexible Budget(290 driving hours)

Revenue 121,800

(290*420)

Expenses:

Wages and salaries 47,060

($11,100 +290*$124.00q)

Supplies 870

($3.00q*290)

Equipment rental 8,480

($2,100 +290* $22.00q)

Insurance 4,000 (Fixed)

Miscellaneous 932

($520 + 290*$1.42q)

Total expense 61,342

Net operating income $60,458

(121,800-61,342)

Therefore the Flexible-budget Net operating income will be $60,458

A project has an initial cost of $10,600 and produces cash inflows of $3,700,$4,900,and $2,500 for Years 1 to 3,respectively.What is the discounted payback period if the required rate of return is 7.5 percent?
A) 2.65 years
B) 2.78 years
C) 2.94 years
D) 2.88 years
E) Never

Answers

Answer:

The project will never pay the initial investment.

Explanation:

The payback period is the time required to cover the initial investment.

We need to use the following formula on each cash flow:

PV= Cf/(1+i)^n

PV1= 3,700/1.075= 3,441.86

PV2= 4,900/1.075^2= 4,240.13

PV3= 2,500/1.075^3= 2,012.40

Now, the payback period:

Year 1= 3,441.86 - 10,600= -7,158.14

Year 2= 4,240.13 - 7,158.14= -2,918

Year 3= 2,010.4 - 2,918= -907.6

The project will never pay the initial investment.

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