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If an Exempt Organization Owns a Feeder Organization, the Exempt

question 103

True/False

If an exempt organization owns a feeder organization, the exempt organization is taxed on the profits of the feeder organization under the unrelated business income tax (UBIT) rules.


Definitions:

Net Present Value

A financial metric that calculates the difference between the present value of cash inflows and the present value of cash outflows over a period of time.

Present Value

The contemporary valuation of foreseeable future earnings or sequences of cash payments, taking into account a specified interest rate.

Net Present Value Method

A method of evaluating the profitability of an investment by calculating the difference between the present value of cash inflows and the present value of cash outflows over a period of time.

Rate Of Return

A financial ratio used to calculate the gain or loss of an investment over a specified period, expressed as a percentage of the investment's initial cost.

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