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RoseWind [281]
3 years ago
9

Sandra Stone, Vice President of International Operations for Global Apparel Corporation, was working with her subordinate, Pete

Thompson, to plan for his upcoming 18-month overseas assignment to the firm's new office in Rome. Based upon her experience with previous failed overseas assignments, she was taking steps to avoid another failure. Therefore, one of the key features of Sandra's plan for Pete was to
Business
1 answer:
SVEN [57.7K]3 years ago
7 0

Answer: develop a reentry plan for Pete prior to the completion of the overseas assignment.

Explanation:

The options to the question are:

A. develop a reentry plan for Pete prior to the completion of the overseas assignment.

B. limit communication to every-other-month status phone calls so as to not micromanage Pete.

C. save costs by avoiding a "look-see" trip for Pete and his family, given Pete's enthusiasm.

D. develop performance measures after Pete had completed his first year.

E. develop the assignment "on the fly" given the uncertainties involved.

From the question, we are informed that Sandra Stone, Vice President of International Operations for Global Apparel Corporation, was working with her subordinate, Pete Thompson, to plan for his upcoming 18-month overseas assignment to the firm's new office in Rome.

We are further told that based upon her experience with previous failed overseas assignments, she was taking steps to avoid another failure. Therefore, one of the key features of Sandra's plan for Pete was to develop a reentry plan for Pete prior to the completion of the overseas assignment. This will help to prevent another failed overseas assignment.

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Answer:

c. $74,450

Explanation:

The computation of the Net present value is shown below  

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where,  

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All yearly cash flows would be

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So, the value would equal to

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Answer:

Present Value= $15,874.25

Explanation:

Giving the following information:

Assume the real rate of interest is 3.00% and the inflation rate is 6.00%. What is the value today of receiving 14,488.00 in 13.00 years?

<u>This is a rare case where the interest rate is negative:</u>

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