The owner of the firm expects to make a profit of K100 for each of the two years and be able to sell the firm at the end of the second year at K800. The owner of the firm believes the appropriate discount rate for the firm is 15%. What is the value of the firm

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Product and Price Bundling

Product and price bundling is used as a marketing strategy by businesses, where complementary products and services are combined and sold as a package deal. This bundled price is usually less than the total price of the individual products if they were to be sold separately. When bundled and sold, each product is sold at a reduced price. Using a price bundling strategy helps increase the average revenue per user and also increases the engagement with the user. This happens as the perceived value of the bundled products is more than the individual products.