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ACCOUNTING PRINCIPLES I-FINANCIAL CHAPTER 8 WRITING ASSIGNMENT Assume that you work for Theater-at-Home, Inc., a retall company that sells basement movie projection systems for $10,000.
ACCOUNTING PRINCIPLES I-FINANCIAL CHAPTER 8 WRITING ASSIGNMENT Assume that you work for Theater-at-Home, Inc., a retall company that sells basement movie projection systems for $10,000. Your boss is considering two types of promotions: 1. Offering customers a $1,000 coupon that they can apply to future purchases, 2. Offering credit terms that allow payments of $2,000 down and $2,000 per year including the purchase of annual maintenance. for four years starting one year after the purchase. Theater-at-Home would have to borrow money at 7 percent interest to finance these credit arrangements. Discuss the relative merits of these two plans, including their implications for accountir and the time value of money. Which alternative should Theater-at-Home implement? What changes, if any, would you recommend to be considered
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