Question

In: Finance

The management of the Mojito Theme hotel estimated that they can generate $180,000 and $190,000 in...

The management of the Mojito Theme hotel estimated that they can generate $180,000 and $190,000 in room revenues in 2011 and 2012, respectively, by using some other forecasting methods. However, the total room revenues were actually $185,000 and $200,000 in 2011 and 2012, respectively. The management team wants to come up with a robust forecasting report and they want to see the forecasting results with exponential smoothing model. Therefore, based on the information given, if the management would like to sell 2,500 rooms in 2012, what is the forecasted average daily rate (ADR) in 2012 based on the exponential smoothing model?

Solutions

Expert Solution

jeff jeffy answered 1 year ago
Next > < Previous

Related Solutions

The upfront cost of the project is $30,000. The company has estimated that it can generate...
The upfront cost of the project is $30,000. The company has estimated that it can generate cash flows of $10,000 in each of the next two years, and then a final $20,000 cash flow before the brewing system has to be replaced. The company plans to depreciate the system over 3 years with annual straight-line depreciation expenses of $10,000. As part of its analysis the company plans to perform a capital budgeting analysis to assess the viability of the purchase....
Disney offers both hotel rooms and entrance to their theme parks at their resorts.
Disney offers both hotel rooms and entrance to their theme parks at their resorts. Consider four different market segments with willingness to pay for rooms and market shares shown in the table below. Assume a total market size of 5,000 individuals per day.Segment AmusementPark Lover, Luxury Lover, Conference Devotee, Disney Devotee Room, $200 $300 $325 $50 Theme Park $150 $50 $5 $200 Market Share 20% 10% 20% 50%a) Scenario A: Consider a Disney price menu with the Hotel Room at...
Lets consider again the willingness to pay for a hotel room and theme park entrance for...
Lets consider again the willingness to pay for a hotel room and theme park entrance for the four market segments. Also assume as before a market size of 5,000 individuals per day. Segment Room Theme Park Market Share Amusement Park Lover $200 $150 20% Luxury Lover $300 $50 10% Conference Devotee $325 $5 20% Disney Devotee $50 $200 50% Which would be the optimal price to maximize revenue for the Room and Theme Park, without considering the possibility of bundling?...
JB Co. is planning to invest in a new koala theme park. The investment will generate...
JB Co. is planning to invest in a new koala theme park. The investment will generate $4.5 million p.a. for 15 years with the first cash inflow received in one year's time. The required rate of return for this type of investment is expected to be 6% p.a. for years 1-9 rising to 11% p.a. for years 10-15. What is the most JB Co. should pay for this investment now?
JB Co. is planning to invest in a new koala theme park. The investment will generate...
JB Co. is planning to invest in a new koala theme park. The investment will generate $4.5 million p.a. for 15 years with the first cash inflow received in one year's time. The required rate of return for this type of investment is expected to be 6% p.a. for years 1-9 rising to 11% p.a. for years 10-15. What is the most JB Co. should pay for this investment now?
PROBLEM In the Hotel management domain, we have the following concepts: Hotel Hotel chain Hotel room  ...
PROBLEM In the Hotel management domain, we have the following concepts: Hotel Hotel chain Hotel room       Reservation Hilton Hilton San Diego Bayfront Meeting room Ballroom Guest Room Catering Service Internet Service       TV Service Guest Parking Service       Item on bill       You are asked to design a model, using a UML class diagram to relate the abovementioned concepts: Correctly use UML notations for relations such as generalization, association, aggregation, composition. Be careful to distinguish objects from classes. You...
16sb Please show full calculation, TIA! ------- 5 ABC Company estimated that it can generate $42,000...
16sb Please show full calculation, TIA! ------- 5 ABC Company estimated that it can generate $42,000 per year in additional cash inflows for the next five years if it automates some of its production equipment at an investment cost of $150,000. ABC's discount rate is 10 percent. Present value factors: Present value of $1 for 5 years @ 10 percent = 0.6209. Present value of an annuity of $1 for 5 years @ 10 percent = 3.7908. Calculate the following:...
On January 1, 2019, Chelsea Company purchased for $180,000 a new machine that has an estimated...
On January 1, 2019, Chelsea Company purchased for $180,000 a new machine that has an estimated useful life of ten years (or 550,000 stamping operations), after which the expected salvage value is $10,000. Under each of the following depreciation methods, calculate the depreciation expense for 2019. Please show work :) Required: Straight-line depreciation Double-declining balance depreciation Units-of-production depreciation, if 66,000 stamping operations were made in 2019
Applying the ‘Consumer Decision Journey’, discuss how a hotel management can adopt social media in engaging...
Applying the ‘Consumer Decision Journey’, discuss how a hotel management can adopt social media in engaging with customers before, during and after their purchase decision.
The lease of Theme Park, Inc., is about to expire. Management must decide whether to renew...
The lease of Theme Park, Inc., is about to expire. Management must decide whether to renew the lease for another 10 years or to relocate near the site of a proposed motel. The town planning board is currently debating the merits of granting approval to the motel. A consultant has estimated the net present value of Theme Park’s two alternatives under each state of nature as shown below. Suppose that the management of Theme Park, Inc., has decided that there...
ADVERTISEMENT
Subjects
ADVERTISEMENT
Latest Questions
ADVERTISEMENT