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alukav5142 [94]
2 years ago
8

Norwegian Cruises is a company that owns and manages a large fleet of ships used primarily for cruises along Norwegian fjords. F

ollowing a spike in tourist arrivals in Norway, Kristofer, the company’s managing director decided to increase the company’s fleet by acquiring another rival business. With the short-term interest rate at 8%, Norwegian Cruises used $9 million of its retained earnings to acquire the assets and settle the debts of Fjords Unlimited, a local struggling business providing similar services. Kristofer’s acquisition was based on predicted additional annual sales of $2 million over the first five years. After close review of the acquisition, the board of directors qualified Kristofer’s performance as poor and decided to immediately terminate his employment and appoint Anngerd, the assistant manager, as the acting managing director. Do you know what motivated the termination of Kristofer’s employment? Answer Sheet: Please input your answer here. Utilize extra sheets of paper when needed.
Business
2 answers:
Bezzdna [24]2 years ago
4 0

Answer:

Explanation:

hsjeneuejene

gulaghasi [49]2 years ago
4 0

The termination of Kristofer's employment was motivated by the fact that his decision to acquire Fjords Unlimited at the cost of $9 million in today's present value when the predicted revenue from the investment would yield $7,985,420.07 in present value terms.

  • This implies that Kristofer made a poor investment that had cost Norwegian Cruises more than the expected cash inflows.  The investment was a loss-making one and could not have been authorized by the board of directors.

  • If Kristofer had invested the $9 million at the short-term interest rate of 8% per year, his company would be richer by $5,544,000 {($9,000,000 x 1.616) - $9,000,000} after 5 years.

Thus, the acquisition investment in Fjords Umlimited by Kristofer was very poor.

Data and Calculations:

Short-term interest rate = 8%

Present value of cash outflow for the acquisition of Fjords Unlimited = $9 million

Predicted annual sales revenue from the acquisition = $2 million

From finance calculator:

N (# of periods) = 5 years

I/Y (Interest per year) = 8%

PMT (Periodic Payment) = $2,000,000

FV (Future Value) =  $0

PV (Present Value of Revenue) = $7,985,420.07

Sum of all cash receipts over 5 years = $10,000,000.00

Learn more about capital investment decisions at brainly.com/question/19485387

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2. NEIU Company has no beginning and ending inventories, and reports the following information for its only product: Direct mate
Mrac [35]

Answer:

Product cost per unit = $13

Explanation:

<em>Absorption costing values units of inventory and production using full cost per unit. Full cost per unit includes variable cost and a portion of fixed production overheads. The fixed production overhead are charged to cost units using predetermined overhead absorption rate.</em>

The full cost per unit = D.mat cost + D.labour cost + Variable overheads+ Fixed overheads.

Total full absorption cost = 125,000 + 100,000 + 75,000 + 25,000=325,000

Full cost per unit = Total full absorption cost/Number of units

                            = 325,000/25,000 =$13

<em>Note that we excluded non- production cost like selling and administrative from the computation because they are not related to production</em>

Product cost per unit = $13

4 0
3 years ago
From June to the end of September, Jennifer wants to save at least $1,500. Her monthly expenses are $600. Jennifer saves whateve
kakasveta [241]

The minimum sales required by Jennifer to meet her savings goal must be $26.25 per hour or $2100 for September.

Given that,

Savings desired = $1500

Monthly expenses = $600

Let money earned by her every hour be x

No. of scheduled work hours = 80

So,

Total money earned for the month = 80 × x

= 80x

As we know,

Money left = Total money earned - expenses

= 80x - $600 ...(i)

A.T.Q.

Money left must be = $1500

Then, by putting the variables in equation (i), we get

80x - 600 = 1500

Now, solving for  x

80x - 600 = 1500

        +600 = + 600

_______________

80x = 2100

x = 2100/80

∵ x = 26.25

Thus, the required sales are $ 26.25 per hour or ( 26.25 × 80 = $2100) for the month of September.

Learn more about 'savings' here:

brainly.com/question/18051939

4 0
2 years ago
Why are inventories stated at lower-of-cost-or-market?a. To report a loss when there is a decrease in the future utility.b. To k
Helga [31]

Answer: The correct answer is "c. To report a loss when there is a decrease in the future utility below the original cost."

Explanation: When talking about current assets, or more precisely, Merchandise inventory, it is common that sometimes the sale value is less than the original cost of the assets, therefore a negative holding result is produced, that is, a loss.

4 0
3 years ago
Which of these will most likely have a positive effect on your lifestyle?
Zinaida [17]

Answer:

A college degree

Explanation:

College life is very likely

5 0
2 years ago
g A method used to determine the value of a stock by analyzing the earnings prospects while considering the business environment
Gennadij [26K]

Answer:

The correct option is fundamental analysis

Explanation:

Industry analysis centers on the competitive nature of the market where a business operates,hence it is a just a component of what makes fundamental analysis.

Operational analysis can be likened to performance measurement where the performance of a business is measured viz-a-viz the expected performance with to aligning actual performance with plan

Fundamental analysis is the correct option as it encompasses determining the value of stock by conducting both internal and external analysis of a business concern.

7 0
3 years ago
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