1. What are the pros and cons of the international sales? What additional risks will the company...
Question:
1. What are the pros and cons of the international sales? What additional risks will the company face? Mark Sexton and Todd Story, the owners of Pinjarra Air, have been in discussions with a light aircraft dealer in Monaco about selling the company’s planes in Europe. Jarek Jachowicz, the dealer, wants to add Pinjarra Air to his current retail line. Jarek has told Mark and Todd that he feels the retail sales will be approximately €5.7 million per month. All sales will be made in euros, and Jarek will retain 5 per cent of retail sales as a commission, which will be paid in euros. Because the planes will be customised to order, the first sales will take place in one month. Jarek will pay Pinjarra Air for the order 90 days after it is filled. This payment schedule will continue for the length of the contract between the two companies.
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Fundamentals Of Corporate Finance
ISBN: 9781743768051
8th Edition
Authors: Stephen A. Ross, Rowan Trayler, Charles Koh, Gerhard Hambusch, Kristoffer Glover, Randolph W. Westerfield, Bradford D. Jordan