A plant nursery pays $2,000 for 800 one-gallon flowering trees, plants them, and forgets them. Five years later, the nursery is able to sell each of the 100 trees that survived for $50 each. What is the rate of return on its total investment?

What will be an ideal response?

Answer: r = (FV/PV)1/n - 1 = ((100*$50)/$2,000)1/5 - 1 = 20.11%

Business

You might also like to view...

Table 6.2 in the text provides a comparative evaluation of survey methods. Which two methods are shown as low on the quantity of data criteria?

A) traditional telephone interviews; computer assisted telephone interviews (CATI) B) in-home interviews; mall intercept interviews C) Internet; mall intercept interviews D) computer assisted telephone interviews (CATI); mall intercept interviews

Business

What does the Delaware antitakeover statute provide? How can an acquirer evade the restrictions imposed by this statute?

What will be an ideal response?

Business