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melomori [17]
3 years ago
12

An investor originally paid $22,000 for a vacant lot twelve years ago. If the investor is able to sell the lot today for $62,000

, what would his annual rate of return be on this investment (rounded to the nearest percent)?
a.7%
b.9%
c.5%
d.11%
Business
1 answer:
MArishka [77]3 years ago
4 0

Answer:

b.9%

Explanation:

Formula for annual rate of return formula is as follows;

Annual rate of return = [ (New value/ Initial value)^(1/t) ] -1

t = the total holding period of investment = 12 years

Old value = 22,000

New value = 62,000

Next, plug in the numbers to the formula;

Annual rate of return; r = [ (62,000/22,000) ^(1/12) ] -1

r = [2.8182 ^(1/12)] - 1

r = 1.0902 -1

r = 0.0902 or 9%

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A fire destroyed a warehouse of the Goren Group, Inc., on May 4, 2021. Accounting records on that date indicated the following:
wel

Answer:

$1,040,000

Explanation:

The calculation of cost of the inventory is shown below:-

Cost of Goods available for sale = Inventory balance + Purchase to date + Freight In

= $2,000,000 + $5,900,000 + $500,000

= $8,400,000

Cost of Goods Sold = Sales to date - (Sales to date × Gross profits)

= $9,200,000  - ($9,200,000 × 20%)

= $9,200,000 - $1,840,000

= $7,360,000

Estimated loss from fire = Cost of Goods available for sale - Cost of Goods Sold

= $8,400,000 - $7,360,000

= $1,040,000

For computing the estimated loss from fire we simply applied the above formula.

3 0
3 years ago
Ronin is a manager for Luxe Letters, Inc., a firm that designs and manufactures greeting cards, invitations, announcements, and
garik1379 [7]

Answer:  FALSE

Explanation: In the given case Ronin is doing the recruitment function for the company which involves finding competent employees as per the organisation's needs and employing them at different jobs.

Controlling can be defined as the function under which management tries to achieve planned objectives by making employees working towards organisation's goals. In simple words controlling involves analyzing the current progress and take corrective actions if there are any deviations.

Hence, it is false.

7 0
3 years ago
Daily demand for a certain product is normally distributed with a mean of 138 and a standard deviation of 13. The supplier is re
VMariaS [17]

Answer:

A. Continuous review system

B. Order quantity = 2,049 Books

C. Reorder point=987

Explanation:

a. To manage inventory, the company is using CONTINUOUS REVIEW SYSTEM

b. Calculation to find the order quality

Using this formula

Order quantity = √((2DS)/H)

Let plug in the morning

Order quantity=√ ((2 x 49,404 x 17)/0.40)

Order quantity = 2,049 Books

Calculation for annual demand

Annual demand=138*358 days

Annual demand=49,404

C. Calculation for reorder point

First step is to find the σL

73 % S.L. - z = 0.613

Using this formula to find the σL

σL = (Lσ^2)

Let plug in the formula

σL=√(7(13)^2)

σL= 34.39

Second step is to find the Reorder point using this formula

Reorder point = d bar(L) + zσL

Let plug in the formula

Reorder point = (138)(7) + 0.613(34.39)

Reorder point = 966+21

Reorder point=987

4 0
3 years ago
A person who produces work in the vernacular is one who
balu736 [363]
Writes in their own language as used colloquially.
4 0
3 years ago
A monopolist does not have a supply curve because the firm's decision about how much to supply is impossible to separate from th
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True. A monopolist does not face the same constraints as an open or free market but instead is bounded by the consumers' demand for its products. Therefore, the firm's decision about how much to supply is directly related to its demand curve because they can produce as much or as little as the consumes demand. 
7 0
3 years ago
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