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Discussion 5: Price Discrimination

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One of the most effective users of price discrimination are airlines. People on the same flight can find they paid as much as double or more than passengers sitting next to them for the same flight. Research this topic and report what you find. Should this be legal? How does price discrimination by airlines affect NPV, IRR, cash flow estimates, profitability indices and the cost of capital? Defend your answer and cite your sources.



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