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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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a manufacturing operation consists of 10 operations; 5 of them are distinct machining operations and the other 5 are distinct as
m_a_m_a [10]

14,400 production sequences are possible.

Since the first set of machining operations can be performed in any order, after selecting one, there are 4 operations left. After selecting another, there are 3 operations left.

After selecting yet another, there are 2 operations left. Finally, after selecting yet another, there is only 1 operation left. This procedure may be described by the equation below: There are 120 potential options when multiplying 5 by 4 by 3 by 2 by 1. It may also be written mathematically as 5! = 120.

Here, We have 5 × 4 x 3 x 2 x 1 = 120 potential unique options for the final five assembly processes.

So total number of combinations will be - 120 × 120

= 14,400

To learn more about Combinations from given link

brainly.com/question/13398997

#SPJ4

8 0
1 year ago
What could go wrong?
SpyIntel [72]

Answer:

brand risk, demand risk, price risk, product development

Explanation:

marketing risk is a potential for losses and failures in marketing.

brand risk : this is the risk that the product would lose it value due to competition and failures in declining brand awareness. it is likely to to affect a new product if prevailing measures are not taken to curb such risk.

demand risk: this is the risk that the demand for the product being advertised will fall or fail to materialized. this is likely to occur when there is a shift in customer needs or choice.

price risk: this is related to a risk that the price tag on the product campaign may vary higher than competitor price.

product development: this risk is related to launching and developing a new product. there is likely hood that new product has a higher percentage of not succeeding in the market.

4 0
3 years ago
Match the following statements to the appropriate terms.
ololo11 [35]

Answer:

Matching Statements to Appropriate Terms:

Price-earnings ratio = Profitability Ratio

Return on Assets = Profitability Ratio

Accounts Receivable Turnover = Liquidity Ratio

Earnings per share = Profitability Ratio

Payout ratio = Profitability Ratio

Working capital = Liquidity Ratio

Current ratio = Liquidity Ratio

Debt to Assets = Solvency Ratio

Free Cash Flow = Solvency Ratio

Explanation:

Profitability Ratios are one of the classes of financial metrics that measure a business's ability to generate earnings relative to its revenue, operating costs, assets, or shareholders' equity during a period of time.

Liquidity Ratios measure the ability of the company to pay its maturing short-term debt obligations from its current assets.  They include the working capital, the current ratio, and the acid-test ratio.

Solvency Ratios measure the ability of the company to pay its maturing long-term debt obligations from its assets.

8 0
3 years ago
On January 1, Year 7, Colorado Corp. purchased a machine having an estimated useful life of 8 years and no salvage value. The ma
shepuryov [24]

Answer:

D) $0

Explanation:

The depreciation method changed, but the previous depreciation expense has already been recorded and subject to taxes. Therefore the new straight line depreciation should start with the remaining asset value and calculate the depreciation expense for the remaining 6 years:

For example, if the purchase value was $1,200,000 (= $300,000 x 4), the remaining value would be $675,000 then the depreciation expense will be $112,500 per year during the next 6 years starting on year 9.

5 0
2 years ago
With the federal funds rate near zero and the economy still​ struggling, the Fed began buying​ 10-year Treasury notes and certai
Korolek [52]

Answer:

The answer is: Quantitative easing

Explanation:

Quantitative easing is a type of monetary policy in which the central bank purchases predetermined quantity or amount of government securities or other financial assets to increase the supply of money, encourage lending and investment and inject liquidity into the economy. It is a unconventional monetary policy which is used when the  standard expansionary monetary policy is ineffective and during low or negative inflation.

<u>Therefore, the given policy is known as </u><u>Quantitative easing.</u>

8 0
3 years ago
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