On November 1, Orpheum Company accepted a $12,400, 90-day, 8% note from a customer to settle his account. What entry should be made on the November 1 to record the acceptance of the note?

Answers

Answer 1

Answer:

Dr Note Receivable $12,400

Cr Accounts Receivable $12,400

Explanation:

Based on the information given we were told that on November 1 the company accepted a note from a customer in order to help settle the customer account of the amount of $12,400 which means that the Journal entry that should be made on the November 1 to record the acceptance of the note will be :

Dr Note Receivable $12,400

Cr Accounts Receivable $12,400


Related Questions

On November 1, 2021, a company signed a $100,000, 6%, six-month note payable with the amount borrowed plus accrued interest due six months later on May 1, 2022. The company should report interest payable at December 31, 2021, in the amount of:___________. a. $ 0. b. $2,000 c. $3,000.d. $1,000

Answers

Answer:

The interest payable to be reported on 31 December 2021 will be of $1000.

Option d is the correct asnwer.

Explanation:

Under the accrual basis or principle of accounting, we match the revenue with the expenses and record the transactions in the period to which they relate to rather than when the cash is paid or received. This means that the interest payment that is accrued for time period relating to this year should be recorded as an expense in the current period and as a liability as it will be paid in the next period. Thus, the interest on the note relating to 2 months from November 2021 to December 2021 will be recorded as follows,

Interest expense = 100000 * 0.06 * 2/12 = 1000

31 Dec 2021

Interest expense    1000 Dr

    Interest Payable     1000 Cr

You own a bond that pays $64 in interest annually. The face value is $1,000 and the current market price is $1,062.50. The bond matures in 30 years. What is the yield to maturity? (round your answer to two decimal places)

Answers

Answer:

the yield to maturity of this bond is 5.7%

Explanation:

given data

pays interest annually C =  $64

face value F = $1,000

current market price P = $1,062.50

bond matures n = 30 years

solution

we get here yield to maturity that is express as

yield to maturity =

yield to maturity = [C+ (F-P) ÷ n] ÷ [(F+P) ÷ 2   ]     .................1

put here value and we get

yield to maturity = [tex]\frac{64+(1000-1062.50)}{11}[/tex]  ÷ [tex]\frac{(1,000+1,062.50)}{2}[/tex]

yield to maturity = 0.057

so that the yield to maturity of this bond is 5.7%

Sam is evaluating a stock that is expected to pay a $1.64 per share dividend at the end of the current year. He expects the dividend to grow by 3.8% per year and has determined that 11% is an appropriate required return for the stock. What is the highest amount he should pay for the stock?

Answers

Answer:

10,900

Explanation:

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:

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

A share of corporate stock is __________.


tangible fungible private property


intangible public property


intangible private property


tangible public property

Answers

Answer:

Tangible public property

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.

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

Roberta is taking the final course in the fourth semester of the Veterinary Technician program. When she reads the final project instructions, she realizes she wrote a paper about the same topic in one of her second-semester courses. Since she's very busy and close to finishing her degree, since the original paper got an A, she wants to submit the same paper for her final project. Can Roberta submit the same paper?

Answers

Answer:

Answer is D because using the same assignment for more than one course is a self plagiarism

2 Dollar Essay

Explanation:

Roberta was not able to submit the same paper, because if same assignment is used then it will be considered as self-plagiarism because it plagiarism. Therefore, Option C is correct.

What is self-plagiarism?

When a writer who republishes the work that is already available in form of written text, that work is either done by self or by someone else is known  as self-plagiarism.

In simple words, a work which is done by a student that involves some or whole of previously done work and that is also without the permission of the professors is known as plagiarism.

An image is attached at the end for better understanding.

Therefore, Option C is correct.

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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 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

Due to the efficiency of its supply chain as a result of technology and resourcefulness, Zara can deliver products to its stores quicker than their competitors with:_______.
A. reverse logistics.
B. less electronic data interchanges.
C. longer lead times.
D. shorter lead times.
E. more stockouts.

Answers

Answer:

D. shorter lead times.

Explanation:

Most of Zara's suppliers are actually working near Zara's headquarters in northern Spain. This  increases production costs, but also increases supply chain efficiency. Daily sales reports are sent by all the stores around the world and headquarters then replenish the products that are selling in higher volumes. Lead times are extremely short, stockouts are very rare, and inventory levels are extremely low. It is basically a fashion industry version of Toyota's JIT.

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%

The Carbon coal company has 2 mines, a surface mine ad a deep mine. it costs $200 per day to operate the surface mine and $250 to operate the deep mine. Each mine produces a medium grade and a medium-hard grade coal, but in different proportions. This surface mine produces 12 tons of medium grade and 6 tons of medium-hard grade coal per day, and the deep mine produces 4 tons of medium grade and 8 tons of medium-hard grade coal every day. The company has a contract to deliver at least 600 tons of medium grade and 480 tons of medium-hard grade coal within 60 days. How many days should each mine be operated so that the contract can be filled at minimum cost

Answers

Answer:

The company should operate the surface mine for 40 days and the deep mine for 30 days. Total costs = $15,500

Explanation:

we have to minimize the following equation: 200S + 250D

where:

S = surface mine

D = deep mine

the constraints are:

12S + 4D ≥ 600 (medium grade coal constraint)

6S + 8D ≥ 480 (medium hard coal constraint

S ≤ 60

D ≤ 60

S, D ≥ 0

S, D are integers

using solver, the optimal solution is 40S + 30D = $15,500

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)

To exploit an expected increase in interest rates, an investor would most likely:_______.a. sell Treasury bond futures. b. take a long position in wheat futures.

Answers

Answer:

a. sell Treasury bond futures

Explanation:

To exploit an expected increase in interest rates, an investor would most likely sell Treasury bond futures. Since treasury bond prices are inversely related to interest rates, an increase in interest rates will cause a decline in price of treasury bonds. By selling Treasury Bond futures, investor will have short position which will benefit from the increase in interest rates.

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

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%

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

What is product positioning

Answers

Answer:

There are positioning to be brought by a client

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

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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!

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

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.

Quilcene Oysteria farms and sells oysters in the Pacific Northwest. The company harvested and sold 7,200 pounds of oysters in August. The company’s flexible budget for August appears below:
Quilcene Oysteria
Flexible Budget
For the Month Ended August 31
Actual pounds (q) 7,200
Revenue ($4.20q) $30,240
Expenses:
Packing supplies ($0.35q) 2,520
Oyster bed maintenance ($3,300) 3,300
Wages and salaries ($2,000 + $0.35q) 4,520
Shipping ($0.65q) 4,680
Utilities ($1,290) 1,290
Other ($460 + $0.01q) 532
Total expense 16,842
Net operating income $13,398
The actual results for August were as follows:
Quilcene Oysteria
Income Statement
For the Month Ended August 31
Actual pounds 7,200
Revenue $27,200
Expenses:
Packing supplies 2,690
Oyster bed maintenance 3,160
Wages and salaries 4,930
Shipping 4,410
Utilities 1,100
Other 1,152
Total expense 17,442
Net operating income $9,758
Required:
Compute the company’s revenue and spending variances for August.

Answers

Answer:

Quilcene Oysteria

Computation of revenue and spending variances for August:

                                                                Flexible      Actual      Variance

For the Month Ended August 31

Actual pounds (q)                                    7,200         7,200        None

Revenue ($4.20q)                                  $30,240    27,200      $3,040   U

Expenses:

Packing supplies ($0.35q)                        2,520      2,690           -170    U

Oyster bed maintenance ($3,300)           3,300       3,160            140    F

Wages and salaries ($2,000 + $0.35q)   4,520      4,930          -410    U

Shipping ($0.65q)                                     4,680        4,410           270    F

Utilities ($1,290)                                         1,290        1,100            190    F

Other ($460 + $0.01q)                                532         1,152          -620   U

Total expense                                         16,842      17,442          -600   U

Net operating income                          $13,398    $9,758       -3,640   U

Explanation:

Quilcene Oysteria 's budget comparison with actual performance shows that there is an unfavorable variance of $3,640 arising from the less than impressive sales revenue and excessive spending incurred during August.  The firm realized less revenue than budgeted and incurred more expenses than budgeted.  The result is this unfavorable variance of $3,640.

Effective Annual Rate A loan is offered with monthly payments and a 8 percent APR. What's the loan's effective annual rate (EAR)?

Answers

Answer:

The loan's effective annual rate (EAR) is 8.30%.

Explanation:

Effective Annual Rate (EAR) can be described as an interest rate which been adjusted for compounding over particular period.

EAR therefore simply refers to the interest rate paid to an investor in a year after taking compounding into consideration.

The EAR can be computed using the following formula:

EAR = ((1 + (i / n))^n) - 1 .............................(1)

Where;

i = Annual percentage rate (APR) = 8%, or 0.08

n = Number of compounding periods or months in a year = 12

Substituting the values into equation (1), we have:

EAR = ((1 + (0.08 / 12))^12) - 1

EAR = ((1 + 0.00666666666666667)^12) - 1

EAR = 1.00666666666666667^12 - 1

EAR = 1.08299950680751 - 1

EAR = 0.08299950680751, or 8.299950680751%

Approximating to 2 decimal places, we have:

EAR = 8.30%

Therefore, the loan's effective annual rate (EAR) is 8.30%.

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

On June 1, 2018, Marigold Company and Swifty Company merged to form Nash Inc. A total of 769,000 shares were issued to complete the merger. The new corporation reports on a calendar-year basis. On April 1, 2020, the company issued an additional 599,000 shares of stock for cash. All 1,368,000 shares were outstanding on December 31, 2020. Nash Inc. also issued $600,000 of 20-year, 8% convertible bonds at par on July 1, 2020. Each $1,000 bond converts to 36 shares of common at any interest date. None of the bonds have been converted to date. Nash Inc. is preparing its annual report for the fiscal year ending December 31, 2020. The annual report will show earnings per share figures based upon a reported after-tax net income of $1,688,000. (The tax rate is 20%.)

Determine the following for 2020:

a. Basic earnings per share.
b. Diluted earnings per share.
c. The earnings figures to be used for calculating:
d. Basic earnings per share.
e. Diluted earnings per share.

Answers

Answer:

a. Basic earnings per share.

weighted average outstanding:

January 1 = 769,000 stocks

April 1 = 599,000 x 9/12 = 449,250 stocks

total weighted average outstanding stocks = 1,218,250 stocks

basic earnings per share = $1,688,000 / 1,218,250 = $1.3856 ≈ $1.39

b. Diluted earnings per share.

diluted shares = ($600,000 / $1,000) x 36 stocks x 1/2 = 10,800

diluted earnings per share = $1,707,200 / (1,218,250 + 10,800) = $1,707,200 / 1,229,050 = $1.389 ≈ $1.39

c. The earnings figures to be used for calculating:

Basic earnings per share

= net income = $1,688,000

Diluted earnings per share

= net income + interests saved - taxes on interests saved = $1,688,000 + $24,000 - $4,800 = $1,707,200

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.

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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