Answer: 1 year and 6 months
Explanation:
The cash flows are as follows,
Year 0 = ($2,500)
Year 1 = $1,500
Year 2 = $1,500
Year 3 = $1,500
Payback period is the time it will take to break even the intial investment (In this question the initial investment is $2,500)
The sum of the cashflows of year1 and year2 is equal to $3,000
which means that the payback period is somewhere bbetween year 1 and year2
1500/3000 = 0.5 year or 6 months
the total payback period is 1 year and 6 months
Answer:
The answer is "False".
Explanation:
Nonprofits are taxation-exempt or charity because, they don't pay tax, on their organization's money they earn, that can work in social, scientific, educational, or research settings.
- It also makes money, but sometimes they are distinguished, itself to for-profit businesses by the profits they make.
- The cash is used to expand the organization, and promote the work further, that's why the answer to this question is false.
IRR function for this problem is 7. 7% and invest in the project
<h3>What is
IRR function?</h3>
The Excel IRR function returns the internal rate of return (IRR) for a sequence of cash flows that occur at regular intervals. Determine the internal rate of return. Return was calculated as a percentage. =IRR (values, [guess])
IRR is the interest rate at which the sum of all cash flows equals zero, thus it is useful for comparing one investment to another. In the preceding example, if we substitute 8% with 13.92%, the NPV becomes 0, and your IRR becomes zero. As a result, IRR is defined as the discount rate at which a project's NPV becomes zero.
To know more about IRR function follow the link:
brainly.com/question/24301559
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The value of item is determined by its utility to the person who is purchasing it. If an item has high utility, then consumers are willing to pay more and will value the product more. If an item has low utility, it will not be very valuable to the person. People value items differently. the old saying that one's man's trash is another's treasure holds true here.