Although appealing to more refined tastes, art as a collectible has not always performed so profitably. During 2003, Sotheby’s sold the Edgar Degas bronze sculpture Petite Danseuse de Quatorze Ans at auction for a price of $9.63 million. Unfortunately for the previous owner, he had purchased it in 1999 at a price of $12.84 million. What was his annual rate of return on this sculpture?
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Although appealing to more refined tastes, art as a collectible has not always performed so profitably. During 2003, Sotheby’s sold the Edgar Degas bronze sculpture Petite Danseuse de Quatorze Ans at auction for a price of $9.63 million. Unfortunately for the previous owner, he had purchased it in 1999 at a price of $12.84 million.
What was his annual
Time value of money concept says that a dollar invested today will have more value in future due to interest earned in between. But this value may be decreased over the period of time.
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- Although appealing to more refined tastes, art as a collectible has not always performed so profitably. During 2003, Sotheby’s sold the Edgar Degas bronze sculpture Petite Danseuse de Quatorze Ans at auction for a price of $9.86 million. Unfortunately for the previous owner, he had purchased it in 1999 at a price of $12.56 million. What was his annual rate of return on this sculpture? (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.)Although appealing to more refined tastes, art as a collectible has not always performed 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 ( Prev 8 of 9 Next >Although appealing to more refined tastes, art as a collectible has not always performed so profitably. During 2015, an auction house sold a painting for a price of $1,010,000. Unfortunately for the previous owner, he had purchased it three years earlier at a price of $1,590,000. 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 performed so profitably. During 2021, an auction house sold a painting at auction for a price of $1,030,000. Unfortunately for the previous owner, he had purchased it three years earlier at a price of $1,610,000. What was his annual rate of return on this painting?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?In the late 1990s, car leasing was very popular in the United States. A customer would lease a car from the manufacturer for a set term, usually two years, and then have the option of keeping the car. If the customer decided to keep the car, the customer would pay a price to the manufacturer, the “residual value,” computed as 60% of the new car price. The manufacturer would then sell the returned cars at auction. In 1999, manufacturers lost an average of $480 on each returned car (the auction price was, on average, $480 less than the residual value).
- Subasta Corporation was able to acquire second hand goods worth P100,000 in an auction. The goods can be sold as is for P120,000 or reconditioned at a cost of P30,000 and sold for P170,000. 1. Identify the irrelevant cost in this problem. Why? 2. Which alternative should be chosen: sell as is or recondition. Why? 3. What is the opportunity cost of reconditioning the goods. Why?Five years ago, an industrial engineer deposited $10,000 into an account and left it undisturbed through now. The account is now worth $27,000. NOTE: This is a multi-part question. Once an answer is submitted, you will be unable to return to this part. What is the purchasing power of the $27,000 with respect to the purchasing power of dollars 5 years ago? The purchasing power of the $27,000 is $A small company purchased a state-of-the-art copier machine in 2012 for $5,995. Five years later the company sold the used copier for $3650. Find the absolute change in the value of the copier. Show your work. Find the relative change in the value of the copier. Show your work. The value of the copier has _________________________ by _________%.
- 1. Your company has a customer who is shutting down a production line, and it is your responsibility to dispose of the extrusion machine. The company could keep it in inventory for a possible future product and estimates that the reservation value is $100,000. Your dealings on the secondhand market lead you to believe that if you commit to a price of $200,000, there is a 0.5 chance you will be able to sell the machine. If you commit to a price of $300,000, there is a 0.2 chance you will be able to sell the machine. If you commit to a price of $400,000, there is a 0.15 chance you will be able to sell the machine. These probabilities are summarized in the following table. For each posted price, enter the expected value of attempting to sell the machine at that price. (Hint: Be sure to take into account the value of the machine to your company in the event that you are not be able to sell the machine.) Posted Price Probability of Sale Expected Value ($) ($) $400,000 0.15 $300,000 0.2…Mr. Alvarez bought a house in October 2001 for $320,000. In October 2014 it was worth $ 68, 000 . Assuming a constant annual rate of decrease in value, what function is the best model for the value of the house in dollars, where t is the number of years after 2001?The Golden Corporation is considering selling one of its old assembly machines. The machine, purchased for $30,000 3 years ago, had an expected life of 6 years and an expected salvage value of zero. Assume Evans uses simplified straight-line depreciation and could sell this machine for $8,000. Also assume Evans has a 34 percent marginal tax rate. What would be the taxes associated with this sale?