2. What is the present value of the following set of cash flows, discounted at 15% per year?
Year
1
2
3
4
CF
100
-100
200
-200?

 The correct option is

(D) x represents the number of level 1 tickets; y represents the number of level 2 tickets

Step-by-step explanation:  Given that a sports team came to town. The stadium filled all 10,000 seats at two-level pricing. Level 1 tickets are $50 each, and level 2 tickets are $150 each. The stadium made $75,000 in ticket sales.

The system of equations that models this scenario is:

x + y = 10,000

50x + 150y = 75,000

We are to find the terms that x and y represents.

Since the total number of seats is 10000 and it is given that x + y = 10000, so x and y represents the number of tickets.

Also, since the price of one level 1 tickets is $50 and that of one level 2 ticket is $150 and 50x + 150y = 75000, so

x represents the number of level 1 tickets; y represents the number of level 2 tickets.

Thus, (D) is the correct option.