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Assume that you just bought a new printed textbook at your bookstore. Upon returning to your class you found that other students were buying the

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Assume that you just bought a new printed textbook at your bookstore. Upon returning to your class you found that other students were buying the same book in electronic form over the internet. You have 10 days to return your printed version for 90% of the original purchase price. Or, you can use the printed textbook all semester and return it to the bookstore at the end of the term for 50% of the original purchase price. Assume you will learn equally well from either version and are indifferent about which to use. The book has no utility to you beyond the end of the term, and you only seek to identify the least cost option. (1) Click in the boxed areas below and use the resulting pick lists to experiment with alternative assumed prices. (2) Next, identify if a particular item is "relevant" to the decision to return or use the printed text. Correct identification of an item as relevant (or not) will cause the boxed area to turn green. (3) Finally, based on the prices you set, decide if the printed book should be returned or used; a correct selection will turn green and reveal appropriate calculations supporting the decision. (1) Set the Prices Select Purchase Price of Printed Text >> >> Select Purchase Price of Electronic Text >> >> the Resulting Immediate Return Value (90%) >> >> th Resulting Return Value at End of Term (50%) >> > > (2) Under the circumstances, which of these items are relevant? Purchase Price of Printed Text Purchase Price of Electronic Text Immediate Return Value of Printed Text Delayed Return Value of Printed Text (3) Return or use printed text? Should the printed textbook be used or returned immediately? SUPPORTING CALCULATIONS Cash flow analysis for returning printed text: Cash refund now Purchase of electronic text #VALUE! Cash flow analysis for keeping printed text: Cash refund at end of term Net cash: #VALUE! #VALUE

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