“Before there was Paris Hilton, there was Consuelo VanderbiltBalsan – a Gilded Age heiress...

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Accounting

“Before there was Paris Hilton, there was Consuelo VanderbiltBalsan – a Gilded Age heiress and socialite, renowned for herbeauty and wealth. Ms. Balsan’s onetime Hamptons home was slated tohit the market priced at $28 million with Tim Davis of the CorcoranGroup. Located on Ox Pasture Road in Southampton, the shingle-stylehome was built around 1910 and is known as “Gardenside” or“Cara-Mia”. Ms. Balsan, the great-granddaughter of railroad magnateCornelius Vanderbilt, owned the house until her death in 1954.According to public records, the estate is owned by Robert G.Goldstein, executive vice president and president of global gamingoperations at Las Vegas Sands Corp, and his wife Sheryl, whopurchased the house in 2002 for $17.4 million.” (The Wall StreetJournal, August 1, 2014, M2) In your initial response to the topicyou have to answer all questions. You are expected to make your owncontribution in a main topic as well as respond with value addedcomments to at least two of your classmates as well as to yourinstructor.
1.Calculate the annual compound growth rate of the house priceduring the period when the house was owned by Robert G. Goldstein(since 2002). (Round the number of years to the whole number).Please show your work.
2.Assume that the growth rate you calculated in question #1remains the same for the next 30 years. Calculate the price of thehouse in 30 years after it was sold by Robert G. Goldstein. Pleaseshow your work.
3.Assume that the growth rate you calculated in question #1remains the same since the house was sold. Calculate the price ofthe house today. (Round the number of years to the whole number).Please show your work.
4.Assume the growth rate that you calculated in #1 prevailedsince 1910. Calculate the price of the house in 1910. Please showyour work.
5.Assume the growth rate that you calculated in #1 prevailedsince 1910. Calculate the price of the house in 1954. Please showyour work.
6.You were using the time value of money concept to answerquestion #5. Think about the time line for that problem. What isthe time point 0 in that problem? Please explain your answer.
7. Reflection – the students also should include a paragraph inthe initial response in their own words reflecting on specificallywhat they learned from the assignment and how they think they couldapply what they learned in the workplace.

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Q1 Particulars Amount million Purchase value of the house in 2002 174 Market price in 2014 28 Increase since 2002 2800 1740 106 Number of years since purchase 12 Annual increase in price 10612 088333333 Annual growth rate 08833 x 1001740 507662835 Q2 Assuming the house was sold in August 2014 by Robert Goldstein Particulars Amount million Sale value Assumed 28 Annual growth rate 508 Total growth See Answer

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In: Accounting“Before there was Paris Hilton, there was Consuelo VanderbiltBalsan – a Gilded Age heiress and...“Before there was Paris Hilton, there was Consuelo VanderbiltBalsan – a Gilded Age heiress and socialite, renowned for herbeauty and wealth. Ms. Balsan’s onetime Hamptons home was slated tohit the market priced at $28 million with Tim Davis of the CorcoranGroup. Located on Ox Pasture Road in Southampton, the shingle-stylehome was built around 1910 and is known as “Gardenside” or“Cara-Mia”. Ms. Balsan, the great-granddaughter of railroad magnateCornelius Vanderbilt, owned the house until her death in 1954.According to public records, the estate is owned by Robert G.Goldstein, executive vice president and president of global gamingoperations at Las Vegas Sands Corp, and his wife Sheryl, whopurchased the house in 2002 for $17.4 million.” (The Wall StreetJournal, August 1, 2014, M2) In your initial response to the topicyou have to answer all questions. You are expected to make your owncontribution in a main topic as well as respond with value addedcomments to at least two of your classmates as well as to yourinstructor.1.Calculate the annual compound growth rate of the house priceduring the period when the house was owned by Robert G. Goldstein(since 2002). (Round the number of years to the whole number).Please show your work.2.Assume that the growth rate you calculated in question #1remains the same for the next 30 years. Calculate the price of thehouse in 30 years after it was sold by Robert G. Goldstein. Pleaseshow your work.3.Assume that the growth rate you calculated in question #1remains the same since the house was sold. Calculate the price ofthe house today. (Round the number of years to the whole number).Please show your work.4.Assume the growth rate that you calculated in #1 prevailedsince 1910. Calculate the price of the house in 1910. Please showyour work.5.Assume the growth rate that you calculated in #1 prevailedsince 1910. Calculate the price of the house in 1954. Please showyour work.6.You were using the time value of money concept to answerquestion #5. Think about the time line for that problem. What isthe time point 0 in that problem? Please explain your answer.7. Reflection – the students also should include a paragraph inthe initial response in their own words reflecting on specificallywhat they learned from the assignment and how they think they couldapply what they learned in the workplace.