Answer:
B. team management
Explanation:
A team can be defined as a group of people or set of individuals with various skill set, knowledge and experience coming together to work on a project or task in order to successfully achieve a set goal and objective.
This ultimately implies that, a team comprises of individuals, workers or employees having complementary skills, knowledge and experience needed to execute a project or task successfully. Therefore, workers working as a team usually interact with the other team members and as a result, this enhances performance and strengthen the level of relationship they share.
In this scenario, each day of the week you meet with your direct supervisor and your coworkers for a morning meeting. The meeting is open-forum and issues, goals, topics, and ideas are all discussed at the meeting, during which the supervisor responds when able and asks for feedback often. This is an example of team management.
Tiger Inc. has total sales of $35,821, cost of goods sold is $10,832, general and administrative expenses are $8,240, and depreciation is $523. The tax rate is 21 percent. The firm does not have any interest expense. What is the operating cash flow
Answer:
the operating cash flow is $13,342
Explanation:
The computation of the operating cash flow is shown below:
Operating cash flow = (sales - Cost of goods sold - G&A expenses - depreciation expense) × (1 - tax rate) + Depreciation expense
= ($35,821 - $10,832 - $8,240 - $523) × (1 - 0.21) + $523
= $13,342
Hence, the operating cash flow is $13,342
What was the opportunity cost in a situation in which you use your available cash to buy gas for your car and then stay hungry the rest of the way home?
Answer:
see below
Explanation:
Opportunity cost is the sacrificed benefit by choosing a preferred option over others. The value of opportunity cost is the foregone benefit from the best alternative.
In this situation, the person had to choose between buying gas for the car or using that money to purchase food. Since the person opted to buy gas, they sacrificed having a meal for the rest of the day. The pleasure derived from eating is the opportunity cost for this person.
HELP PLSSS HALP
How many tears would it take to fill up a pool? Explain.
Answer: Lets say 2 tear drops equals a teaspoon, And 3 teaspoons equals a tablespoon and 2 tablespoons equals a fluid ounce and 32 ounces equal a quart and 4 quarts equal a gallon and lets say the pool is 10 gallons It would take about 768000 tears to fill a ten gallon pool. Not gonna lie not even i'm depression enough for that.
A manufacturer has been selling 1000 flat-screen TVs a week at $350 each. A market survey indicates that for each $10 rebate offered to the buyer, the number of TVs sold will increase by 100 per week. (a) Find the demand function (price p as a function of units sold x). p(x) = Correct: Your answer is correct. (b) How large a rebate should the company offer the buyer in order to maximize its revenue? $ 125 Correct: Your answer is correct. (c) If its weekly cost function is C(x) = 61,000 + 110x, how should the manufacturer set the size of the rebate in order to maximize its profit?
Answer:
A. p(x) = (-1/10)x + 450x
B. 506,250
C. $280
Explanation:
(a) Calculation to Find the demand function
Let assume that the demand Q(p) is the LINEAR function of the price
Q(350) = 1000
dQ/dp = -100/10 = -10
Point-slope form :
Q-1000 = -10(p-350)
Q-1000 = -10p + 3500
Q= -10p+(3500+1000)
Q = -10p + 4500
Hence,
Q(p) = -10p +4500
The inverse is:
(Q-4500)/-10 = p
(-1/10)Q + 450 = p
Hence, p(x) = (-1/10)x + 450 where Q=x
Therefore the the demand function will be p(x) = (-1/10)x + 450x
(b) Calculation for How large a rebate should the company offer the buyer in order to maximize its revenue
Revenue = Price * Qauntity sold
R(p) = p*Q(p)
Revenue = p * (-10p + 4500)
Revenue= -10p^2 + 4500p
let Maximize:
0 = dR/dp = -20p + 4500
-4500 = -20p
p=-4500/-20
p = 450/2 = 225
Hence, Max. revenue
-10 (225)^2 + 4500 *225
= -506,250 + 1,012,500
= 506,250
Therefore How large a rebate should the company offer the buyer in order to maximize its revenue will be 506,250
(c) Calculation for how should the manufacturer set the size of the rebate in order to maximize its profit
Let C(x) represent cost to produce x television sets
Let C(Q(p)) represent cost to produce the demanded quantity
C(q(p)) = 61,000 + 110*Q(p)
C(q(p)) = 61,000 + 110* (-10p +4500)
C(q(p)) = 61,000 + -1,100p + 495,000
C(q(p)) = 556,000 - 1,100p
let calculate the profit using this formula
Profit = Revenue - Cost
Let plug in the formula
P(p) = -10p^2 + 4,500p - ( 556,000 - 1,100p)
P(p) = -10p^2 + 4,500p -556,000 + 1,100p
P(p) = -10p^2 + 5,600p - 556,000
Maximizing:
0=dP/dp = -20p + 5,600
Hence, maximizing profit occurs at price p=-5,600/-20 = $280
Therefore how should the manufacturer set the size of the rebate in order to maximize its profit will be $280
Consider two neighboring island countries called Arcadia and Felicidad. They each have 4 million labor hours available per week that they can use to produce jeans, corn, or a combination of both. The following table shows the amount of jeans or corn that can be produced using 1 hour of labor.
Jeans Corn
Country (Pairs per hour of labor) (Bushels per hour of labor)
Arcadia 8 16
Felicidad 5 20
Initially, suppose Arcadia uses 1 million hours of labor per week to produce jeans and 3 million hours per week to produce corn, while Felicidad uses 3 million hours of labor per week to produce jeans and 1 million hours per week to produce corn. Consequently, Arcadia produces 8 million pairs of jeans and 48 million bushels of corn, and Felicidad produces 15 million pairs of jeans and 20 million bushels of corn. Assume there are no other countries willing to trade goods, so, in the absence of trade between these two countries, each country consumes the amount of jeans and corn it produces.
Arcadia's opportunity cost of producing 1 pair of jeans is____of corn, and Felicidad's opportunity cost of producing 1 pair of jeans is____of corn. Therefore,____has a comparative advantage in the production of jeans, and____has a comparative advantage in the production of corn.
Suppose that each country completely specializes in the production of the good in which it has a comparative advantage, producing only that good. In this case, the country that produces jeans will produce ___ million pairs per week, and the country that produces corn will produce ____ million bushels per week.
When the two countries did not specialize, the total production of jeans was 23 million pairs per week, and the total production of corn was 68 million bushels per week. Because of specialization, the total production of jeans has increased by____million pairs per week, and the total production of corn has increased by____million bushels per week.
Because the two countries produce more jeans and more corn under specialization, each country is able to gain from trade.
Calculate the gains from trade—that is, the amount by which each country has increased its consumption of each good relative to the first row of the table. In the following table, enter this difference in the boxes across the last row (marked “Increase in Consumption”).
Arcadia Felicidad
Jeans Corn Jeans Corn
(millions of pairs) (millions of bushels) (millions of pairs) (millions of bushels)
Without Trade
Production 8 48 15 20
Consumption 8 48 15 20
With Trade
Production
Trade action
Consumption
Gains from trade
Increase in consumption
Answer:
Arcadia's opportunity cost of producing 1 pair of jeans is 2 bushels of corn, and Felicidad's opportunity cost of producing 1 pair of jeans is 4 bushels of corn. Therefore, Arcadia has a comparative advantage in the production of jeans, and Felicidad has a comparative advantage in the production of corn.
Suppose that each country completely specializes in the production of the good in which it has a comparative advantage, producing only that good. In this case, the country that produces jeans will produce 32 million pairs per week, and the country that produces corn will produce 80 million bushels per week.
When the two countries did not specialize, the total production of jeans was 23 million pairs per week, and the total production of corn was 68 million bushels per week. Because of specialization, the total production of jeans has increased by 9 million pairs per week, and the total production of corn has increased by 12 million bushels per week.
Because the two countries produce more jeans and more corn under specialization, each country is able to gain from trade.
Calculate the gains from trade—that is, the amount by which each country has increased its consumption of each good relative to the first row of the table. In the following table, enter this difference in the boxes across the last row (marked “Increase in Consumption”).
Arcadia Felicidad
Jeans Corn Jeans Corn
Without Trade
Production 8 48 15 20
Consumption 8 48 15 20
With Trade
Production 32 0 0 80
Trade action 15 48 15 48
Consumption 17 48 15 32
Gains from trade
Increase in 9 12
consumption
A foundry is developing a long-range strategic plan for buying scrap metal for its operations. The foundrycan buy scrap metal in unlimited quantity from two sources: Atlanta and Birmingham, and it receives thescrap daily by railroad cars.The scrap is melted down, and lead and copper are extracted. Each railroad car from Atlanta yields 1 ton ofcopper and 1 ton of lead, and costs $10,000. Each railroad car from Birmingham yields 1 ton of copper and2 tons of lead, and costs $15,000. The foundry needs at least 4 tons of lead and at least 2.5 tons of copperper day for the foreseeable future.1. In order to minimize the long-range scrap metal cost, how many raiload cars of scrap should bepurchased per day from each source
Answer:
The answer is below
Explanation:
Let x represent the number of railroad cars of scrap purchased per day from Atlanta and let y represent the number of railroad cars of scrap purchased per day from Birmingham.
Since Atlanta yields 1 ton of copper and 1 ton of lead while Birmingham yields 1 ton of copper and 2 tons of lead.
The foundry needs at least 2.5 tons of copper per day. Hence:
x + y ≥ 2.5 (1)
The foundry needs at least 4 tons of lead per day. Hence:
x + 2y ≥ 4 (2)
Plotting equations 1 and 2 using geogebra online graphing tool, we get the points that is the solution to the problem as:
(0, 2.5), (4, 0), (1, 1.5)
Car from Atlanta cost $10000 while car from Birmingham costs $15000. Therefore the cost equation is:
Cost = 10000x + 15000y
We are to find the minimum cost:
At (0, 2.5): Cost = 10000(0) + 15000(2.5) = $37500
At (4, 0): Cost = 10000(4) + 15000(0) = $40000
At (1, 1.5): Cost = 10000(1) + 15000(1.5) = $32500
The minimum cost is at (1, 1.5).
2. It is the intentional planting of trees or shrubs that are grown for food
production.
A. Orchards
B. Plants
C. Shrubs
D. Trees
Answer:
A.
Explanation:
An orchard can be described as a tree garden where plants are sown intentionally. The term 'orchard' is derived from an Old English word 'orceard', meaning 'fruit garden.'
Orchards is a fruit farm where trees or shrubs are intentionally sown with the purpose of food production. Some examples include apple orchards, orange orchards, etc.
Therefore, option A is the correct answer.
During the month of March, Harley's Computer Services made purchases on account totaling $45,500. Also during the month of March, Harley was paid $11,000 by a customer for services to be provided in the future and paid $37,900 of cash on its accounts payable balance. If the balance in the accounts payable account at the beginning of March was $78,300, what is the balance in accounts payable at the end of March
Answer:
$85,900
Explanation:
The balance in the account payable at the end of March is computed as;
= Beginning balance of account payable + purchase made - paid amounts of its account payable balance
= $78,300 + $45,500 - $37,900
= $85,900
Please note that the amount for services to be provided in the future is not in anyway related to account payable, thereby must be excluded.
Genting Berhad is a Malaysian conglomerate with holdings in plantations and tourist resorts. The beta estimated for the firm relative to the Malaysian stock exchange is 1.15, and the long-term government borrowing rate in Malaysia is 11.5%. The Malaysian risk premium is 12%. The expected return on the stock for a Malaysian National who is not Internationally diversified is closest to:
Answer:
25.3%
Explanation:
The expected return can be determined using the capital asset pricing model
The expected return = risk free return + (risk premium x beta)
11.5% + (1.15 x 12%) = 25.3%
To be considered part of a market, an individual must
Answer:
Have both willingness to buy and the financial resources needed to buy.
The cost of lighting and maintaining the tallest smokestack in the US (at a shuttered ASARCO refinery) is $90,000 per year. At an interest rate of 10% per year, the present worth of maintaining the smokestack for 10 years is closest to: a. $1,015,000 GE 311 Financial Decisions in Engineering Skill Development Assignment
Answer:
$553,000
Explanation:
Calculation for the present worth of maintaining the smokestack for 10 years
Present worth=$90,000(P/A,10%,10)
Present worth= $90,000(6.144567)
Present worth= $553,011.04
Present worth=$553,000 (Approximately)
Therefore the present worth of maintaining the smokestack for 10 years is closest to:$553,000
The following is the adjusted trial balance for Stockton Company. Stockton Company Adjusted Trial Balance December 31 Cash 6,577 Accounts Receivable 2,141 Prepaid Expenses 690 Equipment 15,082 Accumulated Depreciation 4,161 Accounts Payable 1,637 Notes Payable 5,294 Common Stock 1,000 Retained Earnings 9,508 Dividends 709 Fees Earned 7,913 Wages Expense 2,839 Rent Expense 798 Utilities Expense 352 Depreciation Expense 234 Miscellaneous Expense 91 Totals 29,513 29,513 Determine the net income (loss) for the period.
Answer:
Net income $3,599
Explanation:
Fees Earned $7,913
Expenses:
Wages Expense $2,839 Rent Expense $798 Utilities Expense $352 Depreciation Expense $234 Miscellaneous Expense $91 $4,314Net income $3,599
the following accounts are all permanent accounts that belong to the balance sheet, not the income statement:
Cash, Accounts Receivable, Prepaid Expenses, Equipment, Accumulated Depreciation, Accounts Payable, Notes Payable, Common Stock, Retained Earnings
Dividends are not included in the income statement
What is a KEY reason that an entrepreneur might choose to establish a
corporation rather than a partnership or a sole proprietorship? *
Answer:
permamence, raise more capital,more potential growth, can raise money by borrowing it, and is transferable.
Explanation:
HOPE IT HELPS ( dont judge people if thier answer is not correct ) (◍•ᴗ•◍)❤
Why do we need incentives for entrepreneurs?
My cousin borrowed $18000 for new car loan for 6 years he told me that at the end of the loan he pained $25560 for interest and principal what was the rate of the loan
A 7% b 8% c 9% d 9%
Make you the brainlist if you answer
Answer:
7%
Explanation:
R = (1/T)(A/P-1)
R = (1-6)((25560/18000)-1)
R = .07
R = 7%
AirBird is a domestic airline company that is building a Customer Relationship Management (CRM) system that focuses on providing a personalized experience to all customers. The system would be deployed on mobile phones, tablets and desktop. Customers will be allowed to search for flights, view flight routes and itineraries, filter flights based on price, destination, duration, number of stops, class (basic economy, economy, business and first class). Customers will need an account with AirBird to book a trip or purchase flights. They should
Answer:
AirBird should help their customers and provide a trial on how to run the application of the Airline on their phones. The trial or demo will help the customers to easily access their requirement.
Explanation:
Customer Relationship Management is important in todays world. There are many competitors available and the bargaining power of customers is high as they can easily switch to other airline because of available alternates. The airline company has launched a program which will help its customers to easily access all the information about the airline. The customers find it easy to access the information they require by just a click on their phone. They can search flights, routes and prices of the flight on their phones.
Jackson Inc. listed the following data for 2019: Budgeted factory overhead $1,272,000 Budgeted direct labor hours 80,000 Budgeted machine hours 40,000 Actual factory overhead 1,201,400 Actual direct labor hours 86,700 Actual machine hours 39,800 Assuming Jackson Inc. applied overhead based on machine hours, the firm's predetermined overhead rate for 2019 (round calculations to 2 significant digits) is:
Answer: $31.80 per machine hour
Explanation:
Based on the information that have been given in the question, since the overhead was applied by Jackson Inc., therefore, the firm's predetermined overhead rate will be:
= Budgeted factory overhead / Budgeted machine hours
= $1,272,000 / 40000
= $31.80 per machine hour
Someone who does not have an aptitude or ability in a career area is at disadvantage if they select a career in that
field.
Please select the best answer from the choices provided
O T
Someone who does not have an aptitude or ability in a career area is at a disadvantage if they select a career in that field. ... When working on developing an ability, it is important to get feedback to know how you are doing. True. Jobs that require you to use your aptitudes are typically unrewarding
Answer:
true
Explanation:
Use a piece of scrap paper to prepare a cost of Goods Manufactured from the following numbers: Beginning Direct Raw Materials -$69,000 Direct Raw Materials Purchases-$92,000. Direct Raw Materials Ending Inventory- $8000 Direct Labor-$25,000. Factory Overhead $37,000. Beginning work in process inventory $22,000. Ending Work in process Inventory $23,500 What are the total manufacturing costs for this statement
Answer:
the total manufacturing cost is $215,000
Explanation:
The computation of the total manufacturing cost is shown below:
= Direct material used + direct labor cost + manufacturing overhead cost
= $69,000 + $92,000 - $8,000 + $25,000 + $37,000
= $215,000
Hence, the total manufacturing cost is $215,000
We simply applied the above formula
Azule Co. manufactures in two sequential processes, cutting and binding. The two departments report the information below for a recent month. Cutting Binding Beginning work in process Transferred in from cutting dept. $ 2,200 Direct materials $ 1,145 2,646 Conversion 3,750 3,450 Costs added during March Direct materials $ 9,240 $ 7,100 Conversion 14,700 18,575 Transferred in from cutting dept. 20,530 Transferred to finished goods 49,000 Determine the ending balances in the Work in Process Inventory accounts of each department.
Answer:
Cutting $8,305
Binding $365
Explanation:
Calculation to Determine the ending balances in the Work in Process Inventory accounts of each department.
Cutting Ending work in process =$ 1,145+ 3,750+$ 9,240+$14,700-$20,530
Cutting Ending work in process =$8,305
Therefore the ending balances in the Work in Process Inventory accounts for cutting department will be $8,305
Binding Ending work in process= $2,200+$2,646+$3,450+$7,100+$18,575+$20,530-$49,000
Binding Ending work in process= $365
Therefore Therefore the ending balances in the Work in Process Inventory accounts for binding department will be $365
Seasons Construction is constructing an office building under contract for Cannon Company and uses the percentage-of-completion method. The contract calls for progress billings and payments of $1,550,000 each quarter. The total contract price is $18,600,000 and Seasons estimates total costs of $17,750,000. Seasons estimates that the building will take 3 years to complete, and commences construction on January 2, 2018.At December 31, 2018, Seasons estimates that it is 30% complete with the construction, based on costs incurred. What is the total amount of Revenue and Profit from Long-Term Contracts recognized for 2018?
Answer:
The correct answer is "$5,580,000".
Explanation:
The given values are:
Total contract price,
= $18,600,000
Completion percentage,
= 30%
Seasons estimates,
= $17,750,000
Now,
In 2018,
The total amount of revenue will be:
= [tex]Total \ contract \ price\times Completion \ percentage[/tex]
On substituting the given values, we get
= [tex]18,600,000\times 30 \ percent[/tex]
= [tex]5,580,000[/tex] ($)
The president of State University wants to forecast student enrollments for this academic year based on the following historical data: Year Enrollments 5 Years ago 15,000 4 Years ago 16,000 3 Years ago 18,000 2 Years ago 20,000 Last Year 21,000 What is the forecast for this year using trend-adjusted (double) smoothing with alpha
Answer:
19,500
Explanation:
Calculation for the Forecast for this year
First step is to calculate the Forecast for last year
Forecast for last year= [(1 - 0.5 ) × 16,000 ) + ( 0.5 × 20,000)]
Forecast for last year= [(0.5 × 16,000 ) + ( 0.5 × 20,000)]
Forecast for last year= 8,000 + 10,000
Forecast for last year= 18,000
Now let calculate the Forecast for this year
Forecast for this year= [(1 - 0.5 ) × 18, 000 ) + ( 0.5 × 21,000)]
Forecast for this year= [(0.5 × 18, 000 ) + ( 0.5 × 21,000)]
Forecast for this year= 9,000 + 10,500
Forecast for this year= 19,500
Therefore the Forecast for this year will be 19,500
6 . How shifts in demand and supply affect equilibrium Consider the market for pens. Suppose that the number of students with an allergy to pencil erasers increases, causing more students to switch from pencils to pens in school. Moreover, the price of ink, an important input in pen production, has increased considerably.
Answer:
Suppose that the number of students with an allergy to pencil erasers increases, causing more students to switch from pencils to pens in school.
This will shift the demand curve to the right, increasing the total demand at all price levels.Moreover, the price of ink, an important input in pen production, has increased considerably.
This will shift the supply curve to the left, increasing the price of pens at every demand level.What is sure is that the price of pens will increase. It is likely that the quantity demanded increases, but the extent by which the quantity demanded will increase is unknown.
Explain how depth affects oxygen content in ocean water.
Explanation:
Ocean warming-driven deoxygenation: Warmer ocean water holds less oxygen and is more buoyant than cooler water. This leads to reduced mixing of oxygenated water near the surface with deeper waters, which naturally contain less oxygen. Warmer water also raises oxygen demand from living organisms.
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The Gargus Company, which manufactures projection equipment, is ready to introduce a new line of portable projectors. The following data are available for a proposed model: Variable manufacturing costs 270 Applied fixed manufacturing overhead 135 Variable selling and administrative costs 90 Applied fixed selling and administrative costs 105 What price will the company charge if the firm uses cost-plus pricing based on variable manufacturing cost and a markup percentage of 200%
Answer:
$810
Explanation:
The computation of the price that charge by the company is as follows:
As we know that
Markup percentage = 100 × (sales price - cost) ÷ (cost)
As the cost is depend upon variable manufacturing cost only
so cost would be $270
Now
markup percentage = 100 × (sales price - $270) ÷ 270
200 × $270 = 100 × (sales price - $270)
sales price = $270 + $540
= $810
Van is sick and tired of his job. His doctor certifies that his health may be compromised if he continues to work at his current job. He sells his life insurance policy to Life Settlements, Inc. for $50,000 so he can take a break from work. He has paid $10,000 so far for the policy. How much of the $50,000 must Van include in his taxable income
Answer:
$40,000
Explanation:
Based on the information given How much of the amount of $50,000 that Van must include in his taxable income will be $40,000 ($50,000-$10,000). The reason why he must pay tax on the amount of $40,000 gain ($50,000-$10,000) on the sale of the policy is that all the necessary requirements for the death benefit has not been meant by Van.
Therefore Van must include in his taxable income the amount of $40,000.
The classic supply chain approach has been based on
forecasting which of the following parts of future
inventory using statistical trending?
Transfer
Demand
olololo
Lifecycle
Safety stock
Answer:
Demand
Explanation:
The classic supply chain approach statistics refers to data regarding past suppliers or sales through the distribution channels. A business can use this information to analyze sales trends. Once the sale trends are determined, future demand for products can be estimated. The business uses historical data from its supply chain to predict future sales and demand.
Nissley Wedding Fantasy Corporation makes very elaborate wedding cakes to order. The owner of the company has provided the following data concerning the activity rates in its activity-based costing system: Activity Cost Pools Activity Rate Size-related$1.33per guest Complexity-related$28.42per tier Order-related$74.92per order The measure of activity for the size-related activity cost pool is the number of planned guests at the wedding reception. The greater the number of guests, the larger the cake. The measure of complexity is the number of tiers in the cake. The activity measure for the order-related cost pool is the number of orders. (Each wedding involves one order.) The activity rates include the costs of raw ingredients such as flour, sugar, eggs, and shortening. The activity rates do not include the costs of purchased decorations such as miniature statues and wedding bells, which are accounted for separately. Data concerning two recent orders appear below: Tijerina WeddingTwersky Wedding Number of reception guests 54 129 Number of tiers on the cake 2 4 Cost of purchased decorations for cake$29.30$54.84 Assuming that all of the costs listed above are avoidable costs in the event that an order is turned down, what amount would the company have to charge for the Tijerina wedding cake to just break even
Answer:
$230.02
Explanation:
Calculation for what amount would the company have to charge for the Tijerina wedding cake to just break even
Size related $69.16
($1.33 per guest × 52 guests)
Complexity-related $56.84
($28.42 per tier × 2 tiers)
Order-related $74.72
($74.92 per order × 1 order)
Cost of purchased decorations for cake $29.30
Total cost $230.02
($69.16+$56.84+$74.72+$29.30)
The amount that the company would have to charge for the Tijerina wedding cake to just break even will be $230.02
Sound Audio manufactures and sells audio equipment for automobiles. Engineers notified management in December 2018 of a circuit flaw in an amplifier that poses a potential fire hazard. An intense investigation indicated that a product recall is virtually certain, estimated to cost the company $7.5 million. The fiscal year ends on December 31. Required: 1. Should this loss contingency be accrued
Answer and Explanation:
According to the given situation, the contingent liability should be probable and estimated so the cost of the warranty i.e. loss contingency would be accrued and the same would be recorded and reported depend upon the predicted amounts
hence, the same would be considered and relevant too
Although appealing to more refined tastes, art as a collectible has not always performed so profitably. Assume that in 2015, an auction house sold a statute at auction for a price of $10,710,500. Unfortunately for the previous owner, he had purchased it in 2010 at a price of $12,738,500. What was his annual rate of return on this sculpture
Answer:
-3.41%
Explanation:
The computation of the annual rate of return is shown below;
We use the formula:
Future value = Present value × (1 + rate of interest)^number of years
$10,710,500 = $12,738,500 × (1 + rate of interest)^5
($10,710,500 ÷ $12,738,500)^(1 ÷ 5) = (1 + rate of interest)
(1 + rate of interest) = 0.965913622
r = (0.965913622 - 1) × 100
= -3.41%