A plant nursery pays 2,000 for 800 one-gallon flowering trees, ...

[lb_gilbert]

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?

Question 2

Under the judgmental approach for developing a pro forma balance sheet, the plug figure required to bring the statement into balance may be called the ________.
 
  A) cash balance
  B) retained earnings
  C) external financing required
  D) accounts receivable

[ambernicolefink]

Answer to Question 1

Answer: r = (FV/PV)1/n - 1 = ((10050)/2,000)1/5 - 1 = 20.11

Answer to Question 2

C

[lb_gilbert]

YES! Correct, THANKS for helping me on my review

[sailorcrescent]

Excellent