bigsherm:
Assignment 3: God, you make it complicated rofl
- The 1 % _is_ very important
- The $ 40 000 are irrelevant
- The advertiser has to find the effective interest rate. Find it!
- The advertiser compares this rate to ... and chooses to ... if ...
Assignment 4: VERY good! Everything is correct except for the NPV (and thus the end-answer). Maybe you pressed something wrong on your financial calculator.
In pure mathematics: NPV = 9600/1.10 + 9600/1.10^2 + 9600/1.10^3 + (9600 + 25000)/1.10^4 ~= 47 506
NPV < 50 000 --> thus, sell now!
Despite of that, very good and explaining answer.
Assignment 5:
Good
Alternatively, you can use regression and you will find:
C = 262,79 + 0,02671 * x
Where C = total costs, x = no. of sent emails.