Oberon buys a Pro Club Health & Fitness, Inc., franchise, which the franchisor later terminates. In determining whether the
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The correct statement is "Hockey sticks had their prices reduced by $0. 41 more than baseball bats."
Mark down refers to a reduction in price of an item or good. The reduction is generally done as a percentage of price of the item. The purpose behind mark down is to increase sales volume.
<h3>Calculation of reduction in price:</h3>Given:
Markdown in price of baseball bats is 42%
Cost of baseball bats after markdown is $21.46
Markdown in price of hockey sticks is 29%
Cost of hockey sticks after markdown is $39.05
For calculating the amount of markdown, we need to find the original cost of baseball bats and hockey sticks.
Calculation of cost of baseball bats before markdown:
Hence the markdown in price of baseball bats is
Similarly, for hockey sticks:
Markdown in the cost of hockey sticks is .
Difference in markdown is:
Therefore it can be concluded that markdown in cost of hockey sticks is more as compared to baseball bats by $0.41
Hence the correct statement is "Hockey sticks had their prices reduced by $0. 41 more than baseball bats."
Learn more about markdown here:
Answer:
(A) A perpetuity is a stream of regularly timed, equal cash flows that continues forever
(B) The value of a perpetuity is equal to the sum of the present value of its expected future cash flows
the bank offers 1.6%
in the alternative scenario it offers 1.067%
Explanation:
(A) A perpetuity is a stream of regularly timed, equal cash flows that continues forever
The perpetuity is an annuity in which time tends to infinity, to be qualified as an annuity the cash payment must be regular.
(B) The value of a perpetuity is equal to the sum of the present value of its expected future cash flows
As state above the perpetuinty is an annuity, the annuities return the present value of the expcted future cash flow.
Given the annuity formula
if times tends to infinity then the expression:
Nexti n the annuity formula we got:
So we end up with C / rate = PV
which s the perpetuity formula
800/50000 = 0.016 = 1.6%
800/75000 = 0.0106667 = 1.067%