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# Optimal Annual interest rate 15% Daily interest rate 0.0559% Current ticket price 1.50 Increased ticket price 1.75 Daily demand for tickets 2 Daily...

This question was created from Case_S12_01 https://www.coursehero.com/file/10335550/Case-S12-01/

How did we calculate the red cell? What is the reference point for the optimal number of days worth to purchase on day 1.

Optimal Annual interest rate _
Daily interest rate 0.0559%
Current ticket price Increased ticket price Daily demand for tickets Daily discount factor 0.999441 Q. # of days worth to purchase on day 1 (at low price) _ Cost on day 1 \$828.00 . . . .
This IS like an annurty of \$3.50
NPV of costs from day Q+1 on ### per day, beginning on day Q +1, KN
Total NPV _ all discounted back to day 1.

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