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Allushta [10]
4 years ago
8

Jerilyn has a $10 coupon and a 15% discount coupon for her favorite store. The store has a policy that only one coupon may be us

ed per purchase. When is it best for Jerilyn to use the $10 coupon, and when is it best for her to use the 15% discount coupon?
Business
1 answer:
poizon [28]4 years ago
4 0

Answer:

  • <u><em>It is best for Jerilyn to use the $10 coupon when the value of the purchase is equal or lower than $66.67, and it is best to use the $10 coupon when the value of the purchase is greater than $66.67</em></u>

Explanation:

Assume the value of the purchase is P.

Then <em>15%</em> of P is 0.15P.

To obtain the maximum benefit from the <em>15% coupon</em>, <em>Jerilyn</em> should use it when the discount from it is greater than the discount from the $10 coupon. This is:

  • 0.15P > $10

Divide both sides by 0.15:

  • P > $10 / 0.15

  • P > $66.67

If the value of the purchase is equal to $66.67 the total discount with any cuopon are equal; if it is lower than $66.67, the discount of the $10 coupon is greater.

Thus, you conclude that for a $66.67 purchase she should use the $10 cuopon and for a purchase greater than $66.67 she should used the 15% cuopon.

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In this case,  buyers view the sellers' products as NOT identical.

<h3>What is sellers' products?</h3>

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andrezito [222]

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. D. print U.S. Treasury securities and distribute them to banks

Explanation:

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3 years ago
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labwork [276]

Present value PV= FV(1/(1+r)^n)

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7 0
3 years ago
Read 2 more answers
Prepare a journal entry for the purchase of office equipment on February 19 for $31,700, paying $7,600 cash and the remainder on
Pani-rosa [81]

Answer:

Dr Office equipment 31,700

Cr cash 7,600

Cr Accounts payable 24,100

Explanation:

Preparation of the journal entry for the purchase of office equipment on February 19

Based on the information given the if asset was purchased on February 19 for the amount of $31,700 in which the company paid the amount of $7,600 cash and the remainder on account which means that the journal entry will be:

February 19

Dr Office equipment 31,700

Cr cash 7,600

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8 0
3 years ago
financial calculator Bruno's Lunch Counter is expanding and expects operating cash flows of $23,900 a year for 5 years as a resu
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Answer:

NPV = 138,347.55

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<em>Net Present Value (NPV) : This is one of the techniques available to evaluate the feasibility of an investment project. The NPV of a project is the difference between the present value of the cash inflows and the cash outflows of the project.</em>

We sahall compute theNPV of this project by discounting the appropriate cash flows as follows:

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PV =A× (1- (1+r)^(-n))/r

A- 23,900, r - 12%, n- 5

PV = $23,900 × (1- (1.12)^(-5))/0.05

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PV = 5600× 1.12^(-5)

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NPV = (66,000) + (5600) + 3,177.59 + 206,769.96

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5 0
3 years ago
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