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5 million for the following two several years in direction of introduction and promotion. Nakamura would provide his “Chrysanthemum” model but would have to give exclusive representation to SSW for 5 years at typical commission prices and in addition forego his revenue margin towards paying again of the $ one.five million.

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When he misses his income intention, which seldom takes place, The shop's concentrate on is generally not satisfied. Ranjan, however, like it generally won't help in performing the popular duties, Significantly on the disappointment of additional reading one other eleven salespeople, who think that if they don't cope with the popular jobs, they will be fired.

e. CAGR (compound normal development return). A capital investor is definitely enthusiastic about The online return attained year after calendar year, Hence usage of geometric is more proper. Hence we would use geometric common for danger totally free fee and possibility premium for each with the 3 divisions, as specified in exhibit five from the case.

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