Stan Is a Real Estate Salesperson

question 142

Short Answer

Stan is a real estate salesperson. He receives 60% of the 4.8% commission that the real estate agency charges on sales. If his income for the past year was $150,480, what was his dollar volume of sales for the year?

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Definitions:

Net Present Value

The total present value of a series of future cash flows minus the initial cost of investment.

Depreciation Costs

Expenses that represent the reduction in value of tangible assets over time due to use, wear, and tear, or obsolescence.

Net Present Value

A financial metric that calculates the value of a series of cash flows by discounting them to their present value, often used in investment appraisal.

Capital Expenditure Analysis

The process of evaluating and selecting long-term investments that are in line with the firm's goal of wealth maximization.