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%
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What will be an ideal response?
A labor union negotiator insists that all union members be paid according to a standard schedule to ensure fairness. However, the management negotiator argues that a standard schedule would tie the hands of management and reduce operating profits
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