Great lakes health networkrsquos net income increased from, Ask an Expert

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Great Lakes Health Network’s net income increased from $3.2 million in 2001 to $6.4 million in 2011. The total growth rate over the ten years is 100 percent, while the annual growth rate is only about 7.2 percent, which is much less than 100 percent divided by ten years.

a. Why is the annual growth less than the total growth rate divided by ten?

b. Which growth rate has more meaning-the total rate over ten years or the annualized rate?

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Financial Management, Finance

Category:- Financial Management
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