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mestny [16]
3 years ago
6

Pinetops Resorts, an American company, sells the rights to other hospitality companies globally to open resorts with the Pinetop

s name for a fee and a share of the profit, in return for using Pinetops' brand name and a package of materials and services. Pinetops is engaged in Group of answer choices importing. countertrading. exporting. franchising. offshoring.
Business
1 answer:
Nadya [2.5K]3 years ago
8 0

Answer:

franchising

Explanation:

Since in the given situation, the resorts should sold the rights to other companies for a fee and the share profit and in return they used the brand name and material & service packaging

So here the resort should be engaged in franchising as in the franchising the right is given to others for use the name

therefore the second last option is correct

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Answer:

Yes, you should take the MBA because the NPV of taking the MBA is positive.

Explanation:

the total economic costs of taking the MBA program include the lost wages + the costs of taking the MBA and any interest you could have earned by investing it on something else = ($50,000 x 1.03) + ($50,000 x 1.03²) + (2 x $30,000 x 1.08) = $51,500 + $53,045 + $64,800 = $169,345

the present value of your total economic costs:

$51,500/1.08 + $53,045/1.08² + $32,400/1.08 + $32,400/1.08² = $47,685.19 + $45,477.54 + $30,000 + $27,777.78 = $150,940.51

if you continued to work, your salary at year 3 would be $54,636.35 and it would continue to increase by 3% every year. The salary that you can earn with an MBA is $80,000 and it will grow by 4% per year. I used an excel spreadsheet to calculate future salaries and the differential amount between them. Then I calculated the PV at the beginning of year 3 of the differential income.

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the NPV of taking an MBA = $444,769.38 - $150,940.51 = $293,828.87

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