5. Company T's business model predicted the company's revenue for the years 2001 through 2006, based on the company's revenue for the year 2000. For each of the years 2001 through 2006, the predicted revenue was 10% more than the predicted revenue for the preceding year. What was the first year for which the predicted revenue was more than $16,000,000? (1) The predicted revenue for 2001 was $11,000,000. (2) The predicted revenue for 2004 was $4,641,000 more than the revenue for 2000.
Answer: A
Statement (1) ALONE is sufficient, but statement (2) alone is not sufficient.
Using the information from Statement (1), the predicted revenue for 2001 is $11,000,000. Since the revenue for each subsequent year is 10% more than the previous year, we can calculate the revenues for the following years. This allows us to find that the predicted revenue first exceeds $16,000,000 in 2005.
A) Statement (1) ALONE is sufficient, but statement (2) alone is not sufficient.
This option is correct because Statement (1) provides a clear starting point for the revenue calculations. With the initial revenue of $11,000,000 for 2001, we can compute the revenues for subsequent years, eventually determining that the first year the predicted revenue exceeds $16,000,000 is 2005.
B) Statement (2) ALONE is sufficient, but statement (1) alone is not sufficient.
This option is incorrect as Statement (2) indicates that the predicted revenue for 2004 is $4,641,000 more than the revenue for 2000. However, without knowing the revenue for 2000 or having a specific starting revenue, we cannot calculate the revenues for the years leading up to 2004 or subsequently.
C) BOTH statements TOGETHER are sufficient, but NEITHER statement ALONE is sufficient.
This option is incorrect because while Statement (2) provides additional information about the revenue in 2004, it does not contribute to our ability to calculate the first year that exceeds $16,000,000 without the base revenue from Statement (1).
D) EACH statement ALONE is sufficient.
This option is incorrect as Statement (2) alone does not provide enough information to determine the predicted revenues for all years, while Statement (1) alone is sufficient for the calculations.
E) Statements (1) and (2) TOGETHER are NOT sufficient.
This option is incorrect because Statement (1) alone provides sufficient information to calculate the required revenue projections, making this conclusion inaccurate.
Conclusion
Statement (1) provides the necessary starting revenue to calculate the annual projections, clearly allowing us to identify the first year when the predicted revenue exceeds $16,000,000. Statement (2) does not independently allow for the determination of the annual revenues, thus confirming that only Statement (1) is sufficient. Hence, option A is the definitive correct choice.