View the step-by-step solution to:

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


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.

Recently Asked Questions

Why Join Course Hero?

Course Hero has all the homework and study help you need to succeed! We’ve got course-specific notes, study guides, and practice tests along with expert tutors.


Educational Resources
  • -

    Study Documents

    Find the best study resources around, tagged to your specific courses. Share your own to gain free Course Hero access.

    Browse Documents
  • -

    Question & Answers

    Get one-on-one homework help from our expert tutors—available online 24/7. Ask your own questions or browse existing Q&A threads. Satisfaction guaranteed!

    Ask a Question