Although appealing to more refined tastes, art as a collectible has not always perform so profitably. In 2010, an auction house sold a painting at auction for a price of $1,200,000. Unfortunately for the previous owner, he had purchased it three years earlier at a price of $1,780,000. What was his annual rate of return on this painting? (A negative answer should be indicated by a minus sign. Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16. ) Annual rate of return

Although appealing to more refined tastes, art as a collectible has not always perform so profitably. In 2010, an auction house sold a painting at auction for a price of $1,200,000. Unfortunately for the previous owner, he had purchased it three years earlier at a price of $1,780,000. What was his annual rate of return on this painting? (A negative answer should be indicated by a minus sign. Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16. ) Annual rate of return

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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Last week, Ken purchased a painting for $5,000 and paid for it with cash from his checking account. When he got home he realized that the painting's market value was actually $30,000. What is the impact of this transaction on Ken's net worth? Decrease of $5,000 Increase of $5,000 Decrease of $25,000 Increase of $25,0000 Decrease of $30,0000 Increase of $30,0000 No impact
Find the deprecation equation and corresponding domain using the given information. (Let V be the value in dollars. Let t be the number of years since the item was purchased.) A violin bow is purchased for $400 and the value of the bow decreases by $8 per year for 5 years. V(t) = Domain: - 8 ≤ t ≤ 400 - 0 ≤ t ≤ 8 - 0 ≤ t ≤ 5 - 0 ≤ t ≤ 400
5) Your priceless art collection is stolen (the Gregcasso!), you paid $10,000 for it (sorry no insurance) next you sold your Mutual funds for $3,700 and your ACB was $2,250 with no outlays and expenses. Calculate the combined effect of both Dispositions and what is your Capital gain or loss. 6) You purchased 1,000 units of Mutual funds for 10,000 total in 2015. In 2016 you purchased another 500 units at $9.50 a unit, In 2017 another 600 units at $10.50 a unit were purchased and in 2019 400 units at $11 a unit were added. Calculate the average cost base that you would have per unit for the Mutual funds at the end of 2020.
Submit The Gilbert Instrument Corporation is considering replacing the wood steamer it currently uses to shape guitar sides. The steamer has 6 years of remaining life. If kept, the steamer will have depreciation expenses of $650 for 5 years and $325 for the sixth year. Its current book value is $3,575, and it can be sold on an Internet auction site for $4,150 at this time. If the old steamer is not replaced, it can be sold for $800 at the end of its useful life. Gilbert is considering purchasing the Side Steamer 3000, a higher-end steamer, which costs $14,000, and has an estimated useful life of 6 years with an estimated salvage value of $1,400. This steamer falls into the MACRS 5-years class, so the applicable depreciation rates are 20.00%, 32.00%, 19.20%, 11.52%, 11.52%, and 5.76%. The new steamer is faster and would allow for an output expansion, so sales would rise by $2,000 per year; even so, the new machine's much greater efficiency would reduce operating expenses by $1,500 per…
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In 1974, your father purchased a rare art item for $10,000. In 2010, you sold it for $5 million. What annual rate of return did you earn on your father’s purchase? A. 17.77% B. 16.81% C. 20.06% D. 21.43% E. 23.02% F. 18.84%
Vincent Van Gogh sold only one painting during his lifetime, for about $30. A sunflower stilllife he painted in 1888 sold for $39.85 million in 1988,, more than three times the highest pricepaid previously for any work of art. If this painting had been purchased for $30 in 1888 and soldin 1988 for $39.85 million, what would have been the annual rate of return?
A firm bought a used machine 2 years ago for $1500. When new, the machine cost $8000. Today it could be sold for $500. Which of the following statements is true? (a) The fixed cost for operating the machine can be ignored in any analysis. (b) The $8000 purchase price is not included in the analysis. (c) The $1500 paid 2 years ago is included in the analysis. (d) The variable cost of ownership is the difference between what was paid and what the machine is now worth ($1500 – $500 = $1000).
Give only typing answer with explanation and conclusion Tony’s Racing Engines, Inc. wants to replace a 10-year-old cylinder boring machine with a new machine that is more efficient. The old machine cost $30,000 when new and has a current book value of $9,500. TRE can sell the machine to a buyer for its current book value. TRE’s tax rate is 25%. What is the effect of the sale of the old machine on the initial outlay for the new machine?
Q3. In 1990 an anonymous private collector purchased a painting by Picasso entitled Angel Fernandezde Soto for $4,450,000. The painting was done in 1900 and valued then at $1800. If the painting wasowned by the same family until its sale in 1990, what is the interest rate they receive on the $1800investment?

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