Scenario Carol Veldt, Owner of Seagull Terrace, Watched Her Investment Grow

question 114

Essay

Scenario
Carol Veldt, owner of Seagull Terrace, watched her investment grow from a small, seaside motel to a thriving year-round resort in just a few years.Atop a bluff overlooking the Maine coast, Seagull Terrace had attracted thousands of visits during the summer months, but then faced a tremendous downturn in business during the winter months."But, given the industry in the nearby towns, very little year-round competition, and our close proximity to Portland," Carol added, "I couldn't understand why seasonality had to hit Seagull Terrace so hard!"
o Carol spent her first winter devising a new marketing plan.She put together a promotional package designed to attract business travelers year-round.Carol's plan, then, involved a seasonal promotional gimmick-to be implemented from early winter to late spring-that would attract the same numbers as the large summer crowd.Her idea worked! During her second winter, Carol greeted numerous business travelers-both satisfied repeat guests as well as new guests who had been snagged by her promotional appeals.
We still have a long way to go," Carol admitted."Our delicatessen offers delicious entrees, but we'd like to expand that.We provide health club privileges off-site, but we'd like to eventually provide our own.These are goals I hope to achieve in a few years.Our first project, however, included a renovation of our guest rooms and I'm quite proud of the results." Carol then added, "Actually there are so many possibilities! With an indoor pool area, I will eventually offer weekend getaways throughout winter."
Which social networks should Carol Veldt use to strengthen relationships with customers and attract new customers to Seagull Terrace?

Calculate the earnings before interest and taxes (EBIT) for given scenarios.

Understand the concept of net present value (NPV) and its calculation under different scenarios.

Identify the factors affecting operating cash flow (OCF) and calculate OCF under various scenarios.

Analyze the impact of depreciation on cost analysis and cash flows.

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Definitions:

Tax Laws

Regulations governing the taxation of income, property, goods, services, and estates.

Home Ownership

The state or process of owning a house or an apartment; often seen as a key component of the American Dream.

Migrated

The process by which individuals or groups move from one location to another, often for reasons such as seeking better living conditions or employment opportunities.

Eastern Part

The section or area located towards the east of a specific point, region, or country.