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100 points for $49 worth of Veritas practice GMATs FREE VERITAS PRACTICE GMAT EXAMS Earn 10 Points Per Post Earn 10 Points Per Thanks Earn 10 Points Per Upvote ## In New Zealand, the grape is a long-established crop, bu ##### This topic has 2 expert replies and 1 member reply ## In New Zealand, the grape is a long-established crop, bu 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.

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Anaira Mitch wrote:
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. The first question asks us to find when the cumulative income for truffles was at its lowest level. So we're tracking those black squares. The lowest level appears to be at about -$35,000 at the end of Year 5.

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Save $100 off any live Veritas Prep GMAT Course Enroll in a Veritas Prep GMAT class completely for FREE. Wondering if a GMAT course is right for you? Attend the first class session of an actual GMAT course, either in-person or live online, and see for yourself why so many students choose to work with Veritas Prep. Find a class now! ### GMAT/MBA Expert Legendary Member Joined 14 Jan 2015 Posted: 2667 messages Followed by: 122 members Upvotes: 1153 GMAT Score: 770 Anaira Mitch wrote: 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.

The second question asks us to project the income for grapes at the end of year 12, assuming that income would grow at the same rate it had from years 8 to 11. So we're tracking those white circles now. In Year 8, it looks like the income for grapes was around -$7000. In Year 11 it looks to be about +$7000, so over the course of four years, we're talking about an increase of $14,000, and a rate of 14,000/4 =$3500/year. If there were a $3500 increase from Year 11 to Year 12, you're looking at income of approximately 7000 + 3500 =$10,500. So whatever option was closest to that value is the one I'd go with.

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