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In New Zealand, the grape is a long-established crop, but the truffle—an edible fungus that grows on the roots of certain trees—became a commercial crop in the 1980s. The graph represents projected cumulative net income for grape and truffle crops through the end of the year, in thousands of New Zealand dollars per hectare (NZ$1,000/ha), for each of the first 11 years since planting. Cumulative net income is equal to total revenue from crop sales for the years since planting minus total investment costs over those same years.
From each drop-down menu, select the option that creates the most accurate statement about these projections based on the given information.
Cumulative net income from truffles is least at the end of the year since planting.
If cumulative net income for grapes continues to grow at the same rate as in years 8 through 11 since planting, the cumulative net income from grapes for the 12th year since planting will be approximately NZ$ per hectare.
Thanks for the detailed solution. I am a little bit confused with the word "since planting". I thought that the growth rate from year 8 to 11 (which is approximately 4/year) would be applicable since planting. If we apply this growth rate then after 12 years, the cumulative gain will be 4*12-20=28, which is not in the option. But the phrase "since planting" seems confusing to me. Would be please make it clear?
If I pick the values of this slope as 7 and -7 Then 14/3 = X-7 /1 X=35/3=11.66 seems closer to 13.
If I pick the values of this slope as 6 and -6 It’s 10. But, from observation it seems more toward 7.
Is my method wrong or it is a close question?
Show more
Agreed.
I went the all-visual way. If you visually extend that straight graph further up till the 12 yr vertical line would apprently intersect, it clearly seems beyond 10,000.
In New Zealand, the grape is a long-established crop, but the truffle—an edible fungus that grows on the roots of certain trees—became a commercial crop in the 1980s. The graph represents projected cumulative net income for grape and truffle crops through the end of the year, in thousands of New Zealand dollars per hectare (NZ$1,000/ha), for each of the first 11 years since planting. Cumulative net income is equal to total revenue from crop sales for the years since planting minus total investment costs over those same years.
From each drop-down menu, select the option that creates the most accurate statement about these projections based on the given information.
Cumulative net income from truffles is least at the end of the year since planting.
If cumulative net income for grapes continues to grow at the same rate as in years 8 through 11 since planting, the cumulative net income from grapes for the 12th year since planting will be approximately NZ$ per hectare.
Bunuel what is the best approach to find out the future values for such kind of problems when it is super tight?
GMATCoachBen
In New Zealand, the grape is a long-established crop, but the truffle—an edible fungus that grows on the roots of certain trees—became a commercial crop in the 1980s. The graph represents projected cumulative net income for grape and truffle crops through the end of the year, in thousands of New Zealand dollars per hectare (NZ$1,000/ha), for each of the first 11 years since planting. Cumulative net income is equal to total revenue from crop sales for the years since planting minus total investment costs over those same years.
From each drop-down menu, select the option that creates the most accurate statement about these projections based on the given information.
Cumulative net income from truffles is least at the end of the year since planting.
If cumulative net income for grapes continues to grow at the same rate as in years 8 through 11 since planting, the cumulative net income from grapes for the 12th year since planting will be approximately NZ$ per hectare.