(I) The primary firm:
![\[\begin{array}{*{35}{l}} Nominal\text{ }worth\text{ }of\text{ }1\text{ }offer\text{ }=\text{ }Rs\text{ }10 \\ Market\text{ }worth\text{ }of\text{ }1\text{ }offer\text{ }=\text{ }Rs\text{ }13 \\ \end{array}\]](https://www.learnatnoon.com/s/wp-content/ql-cache/quicklatex.com-af42494ec0032bb7fd8720b9d8f94c58_l3.png "Rendered by QuickLaTeX.com")
![\[\begin{array}{*{35}{l}} Profit\text{ }=\text{ }5%\text{ }of\text{ }Rs\text{ }10\text{ }=\text{ }Rs\text{ }0.50 \\ In\text{ }this\text{ }way,\text{ }the\text{ }pay\text{ }%\text{ }=\text{ }Income/Investment\text{ }x\text{ }100 \\ =\text{ }0.50/13\text{ }x\text{ }100\text{ }=\text{ }3.846\text{ }% \\ \end{array}\]](https://www.learnatnoon.com/s/wp-content/ql-cache/quicklatex.com-3cfc6454e56f9b73bd2f3773bfad98d8_l3.png "Rendered by QuickLaTeX.com")
Presently,
The subsequent firm:
![\[\begin{array}{*{35}{l}} Nominal\text{ }worth\text{ }of\text{ }1\text{ }offer\text{ }=\text{ }Rs\text{ }10 \\ Market\text{ }worth\text{ }of\text{ }1\text{ }offer\text{ }=\text{ }Rs\text{ }16 \\ Profit\text{ }%\text{ }=\text{ }6\text{ }% \\ In\text{ }this\text{ }manner,\text{ }pay\text{ }%\text{ }=\text{ }pay/venture\text{ }x\text{ }100 \\ =\text{ }0.60/16\text{ }x\text{ }100 \\ =\text{ }3.75\text{ }% \\ \end{array}\]](https://www.learnatnoon.com/s/wp-content/ql-cache/quicklatex.com-9aad65572da42a6b045df604b1543ef6_l3.png "Rendered by QuickLaTeX.com")
Accordingly, the primary firm is paying better compared to second firm
(ii) Let cash put resources into each firm
![\[=\text{ }Rs\text{ }y\]](https://www.learnatnoon.com/s/wp-content/ql-cache/quicklatex.com-3313c8c913fc8840b560bc63ec278a4b_l3.png "Rendered by QuickLaTeX.com")
For first firm
![\[\begin{array}{*{35}{l}} Number\text{ }of\text{ }offers\text{ }bought\text{ }=\text{ }y/13\text{ }offers \\ Complete\text{ }profit\text{ }=\text{ }Rs\text{ }0.50\text{ }x\text{ }y/13\text{ }=\text{ }Rs\text{ }y/26 \\ \end{array}\]](https://www.learnatnoon.com/s/wp-content/ql-cache/quicklatex.com-1d0b7da5e06e5863aa0743d794ee81a0_l3.png "Rendered by QuickLaTeX.com")
For second firm
![\[\begin{array}{*{35}{l}} Number\text{ }of\text{ }offers\text{ }bought\text{ }=\text{ }y/16\text{ }offers \\ Complete\text{ }profit\text{ }=\text{ }Rs\text{ }0.60\text{ }x\text{ }y/16\text{ }=\text{ }Rs\text{ }3y/80 \\ \end{array}\]](https://www.learnatnoon.com/s/wp-content/ql-cache/quicklatex.com-05ad0eb9d3b0c5872475ed3e787135f7_l3.png "Rendered by QuickLaTeX.com")
Given the distinction of both profit
![\[=\text{ }Rs\text{ }30\]](https://www.learnatnoon.com/s/wp-content/ql-cache/quicklatex.com-6f32efc14405d572377974a5e89997a3_l3.png "Rendered by QuickLaTeX.com")
![\[\begin{array}{*{35}{l}} y/26\text{ }\text{ }3y/80\text{ }=\text{ }Rs\text{ }30 \\ y/1040\text{ }=\text{ }Rs\text{ }30 \\ y\text{ }=\text{ }Rs\text{ }30\text{ }x\text{ }1040\text{ }=\text{ }Rs\text{ }31,200 \\ \end{array}\]](https://www.learnatnoon.com/s/wp-content/ql-cache/quicklatex.com-cd283e851f643a8da238809b60628b2a_l3.png "Rendered by QuickLaTeX.com")
Hence, absolute cash put resources into both firm
![\[=\text{ }Rs\text{ }31,200\text{ }x\text{ }2\]](https://www.learnatnoon.com/s/wp-content/ql-cache/quicklatex.com-a3544ab91520aff5f9ddba02d12c268b_l3.png "Rendered by QuickLaTeX.com")
![\[=\text{ }Rs\text{ }62,400\]](https://www.learnatnoon.com/s/wp-content/ql-cache/quicklatex.com-bcb21c8092d580de510766a6f8efeac1_l3.png "Rendered by QuickLaTeX.com")
