Business, 28.07.2021 15:50 Natalierg05
Welcome Inn Hotels is considering the construction of a new hotel for $90 million. The expected life of the hotel is 30 years, with no residual value. The hotel is expected to earn revenues of $26 million per year. Total expenses, including depreciation, are expected to be $15 million per year. Welcome Inn management has set a minimum acceptable rate of return of 14%.
a. Determine the equal annual net cash flows from operating the hotel.
b. Calculate the net present value of the new hotel. Use 7.003 for the present value of an annuity of $1 at 14% for 30 periods.
c. Does your analysis support construction of the new hotel?
Answers: 3
Business, 21.06.2019 14:00
Employees who are paid to complete a task, such as build a house, are paid on a(n) basis
Answers: 1
Business, 21.06.2019 18:00
Sara bought 12 3/4 cakes sara's friends ate 3/8 how much cake is left
Answers: 1
Business, 22.06.2019 10:10
True tomato inc. makes organic ketchup. to promote its products, this firm decided to make bottles in the shape of tomatoes. to accomplish this, true tomato worked with its bottle manufacture to create a set of unique molds for its bottles. which of the following specialized assets does this example demonstrate? (a) site specificity (b) research specificity (c) physical-asset specificity (d) human-asset specificity
Answers: 3
Business, 22.06.2019 11:40
Vendors provide restaurants with what? o a. cooked items ob. raw materials oc. furniture od. menu recipes
Answers: 1
Welcome Inn Hotels is considering the construction of a new hotel for $90 million. The expected life...
Computers and Technology, 09.12.2020 06:50
History, 09.12.2020 06:50
English, 09.12.2020 06:50
English, 09.12.2020 06:50
Mathematics, 09.12.2020 06:50
History, 09.12.2020 06:50
Mathematics, 09.12.2020 06:50
Mathematics, 09.12.2020 06:50
Mathematics, 09.12.2020 06:50
Biology, 09.12.2020 06:50