Use the Information Below to Answer the Following Question(s)

question 86

Multiple Choice

Use the information below to answer the following question(s) .
Barry operates a shop in a resort in an area known for its high inflation rate. The inflation rate for the last few years has been averaging 3 percent a month. His long-term real rate of return is 12 percent, or 1 percent a month. On April 1 he anticipates that real dollar sales during the summer will be as follows:

-Assume that in recent years a global economic crisis has produced a very high annual inflation rate of 25 percent. Kenyan Coffee has decided to use a nominal rate to determine capital budgeting decisions. Its traditional real rate of return is 10 percent. What is the company's nominal traditional rate of return?

• A) 0.100
• B) 0.250
• C) 0.300
• D) 0.350
• E) 0.375

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Definitions:

Employee Development

Initiatives and programs aimed at improving staff skills, competencies, and career prospects for better performance and job satisfaction.

Compensation

The complete sum of cash and non-cash compensation given to an employee by an employer in exchange for the work done as requested.

Internal Marketing

The notion that a service organization must focus on its employees, or internal market, before successful programs can be directed at customers.

Customer Experience Management

A business strategy focused on managing and improving the entire customer experience across various touchpoints and interactions.