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

Practical Management Science

6th Edition

ISBN:9781337406659

Author:WINSTON, Wayne L.

Publisher:WINSTON, Wayne L.

Chapter2: Introduction To Spreadsheet Modeling

Section: Chapter Questions

Problem 20P: Julie James is opening a lemonade stand. She believes the fixed cost per week of running the stand...

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

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