Westland college uses a 10% discount rate and the total cost approach to capital budgeting analysis. both alternatives are expected to have a useful life of eight years. the working capital would be released for use elsewhere when the project is completed. the net present value of the alternative of overhauling the present system is closest to:

Suppose a holiday inn hotel has annual fixed costs applicable to its rooms of $1.2 million for its 300-room hotel, average daily room rents of $50, and average variable costs of $10 for each room rented. it operates 365 days per year. the amount of operating income on rooms, assuming an occupancy* rate of 80% for the year, that will be generated for the entire year is *occupancy = % of rooms rented