But this is, of course, an optimistic scenario. Let's think of other scenarios.

Present value

Present values

So let's say it's 1.05.

The new model will retail for 30,000 yen.

Well, I won't define the vehicle for you, but I will define the cost for you.

So over here let me draw a better graph than that.

Cost of goods sold, well that's just the cost of the goods sold.

This was an exhibition at the Museum of Modern Art.

Notice that the selling price is written in red.

Then again for your revenue stream.

Our price is considerably higher than the current market price.

Sell, sell, sell.

Over here, this axis right here is going to be the selling price,

And they'll essentially come up with some price, which is essentially as high a price as they want do a high price because obviously as a company,

And you immediately sells that stock that you don't even know, you sell the stock borrow from someone else.

You can buy a machine today for about 300 that you can create yourself, which is quite incredible.

But it's also a morally important one.

It's a fantastic device that we want to get in the hands of as many people as we can.

So if the sale is twenty five percent off of x, we could say that the new price, the sale price will be x minus twenty five percent of x is equal to the sale price.

This is telling us that if the selling price increases, then this will become a larger negative number so we're going to sell fewer, we're gonna sell a smaller quantity.

So what, how can we figure out how to maximize this profit?

And if you were to discount this back.

So, let's say, I cut prices below Imran because I realize this increase price strategy was kind of silly.

Or if we just wanted to round to the nearest penny, since we're talking about selling something, this optimal profit, this optimal profit, will happen at a selling price of 23 and 30, 23 and 33 cents.

But the present value, what does that mean?

They want to encourage high volume purchases, and so they have stepped pricing that is oriented to create volume.

We get 30 s squared plus 1400 s minus 16000.

Un bundling is just a fancy word for saying can I somehow decompose the product into separate pieces, giving some for free or if you're lucky, charging for everyone of them.

Quite an idea of yours... selling dealerships for cars that don't exist.

Let's say this was for 2008.

Obviously a 6 Price to Earnings of 20 times 2013 earnings isn't as good as a 6 Price to Earnings of 2010, because earnings in the future aren't worth as much as earnings today.

I love Lego Mindstorm, is which a wonderful way to experiment with these things.

What do you sell?

So it turns out that those fuels and technologies exist, and this is an example of that this is a solar LED light bulb that we sell for a retail price of about 10 dollars in rural Haiti.

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Now the East India Company would sell the surplus tea directly through hand picked consignees in America.

Or, God forbid, if housing prices actually go down.

And at first, maybe in 2008, they all say, you know what, this is temporary, that was just a fire sale price, and these auctions don't really reflect a market reality.

So it makes sense for me to see if there's any maybe there's some people who want cupcakes, who can't get them because I can't produce that many.

As you can see, roughly speaking, as the size of the house goes up, so does the sales price.