The CEO of Kuehner Development Company has just come from a
meeting with his marketing staff where he was given the latest
market study of a proposed new shopping center. The study calls for
a construction phase of 1 year, and a subsequent operation phase.
This question focuses largely on the construction phase.
The marketing staff has chosen a 12-acre site for the project that
they believe they can acquire for $2.25 million. The initial
studies indicate that this shopping center will have gross building
area (GBA) of 190,000 sq. ft.
The head of the construction division assures the CEO that hard
costs will be kept to $54 per sq ft. of GBA, and soft costs
(excluding interest carry and loan fees) will be kept to $4.50 per
square foot of GBA. Site improvements will cost $750,000.
The Shawmut Bank has agreed to provide construction financing for
the project. The bank will finance the construction costs (hard and
soft) and the site improvements at an annual rate of 13%. They will
also charge a loan-commitment fee of 2% of the total balance.
The construction division estimates that 60 percent of the financed
construction costs will be taken down evenly during the first six
months of the construction project. The remaining 40 percent will
be taken down evenly during the last six months.
a. What are the total construction costs that the bank is willing
to finance?
b. Given the terms of the construction loan, what will be the total
interest carry for the shopping center project?
c. What will be the total amount that Kuehner must borrow (Hint:
remember to include interest carry)?
d. How much equity does Kuehner need to put into the project?
e. Acme Insurance Co. agrees to provide permanent financing for the
project and “take-out” the construction loan at the end of 1 year.
They agree to provide a fully amortizing mortgage with a 20 year
maturity at a 12 percent annual interest rate. What is the monthly
debt service that Kuehner will have to make once construction is
complete and operations begin?
In: Finance
The CEO of Kuehner Development Company has just come from a
meeting with his marketing staff where he was given the latest
market study of a proposed new shopping center. The study calls for
a construction phase of 1 year, and a subsequent operation phase.
This question focuses largely on the construction phase.
The marketing staff has chosen a 12-acre site for the project that
they believe they can acquire for $2.25 million. The initial
studies indicate that this shopping center will have gross building
area (GBA) of 190,000 sq. ft.
The head of the construction division assures the CEO that hard
costs will be kept to $54 per sq ft. of GBA, and soft costs
(excluding interest carry and loan fees) will be kept to $4.50 per
square foot of GBA. Site improvements will cost $750,000.
The Shawmut Bank has agreed to provide construction financing for
the project. The bank will finance the construction costs (hard and
soft) and the site improvements at an annual rate of 13%. They will
also charge a loan-commitment fee of 2% of the total balance.
The construction division estimates that 60 percent of the financed
construction costs will be taken down evenly during the first six
months of the construction project. The remaining 40 percent will
be taken down evenly during the last six months.
a. What are the total construction costs that the bank is willing
to finance?
b. Given the terms of the construction loan, what will be the total
interest carry for the shopping center project?
c. What will be the total amount that Kuehner must borrow (Hint:
remember to include interest carry)?
d. How much equity does Kuehner need to put into the project?
e. Acme Insurance Co. agrees to provide permanent financing for the
project and “take-out” the construction loan at the end of 1 year.
They agree to provide a fully amortizing mortgage with a 20 year
maturity at a 12 percent annual interest rate. What is the monthly
debt service that Kuehner will have to make once construction is
complete and operations begin?
In: Finance
A government has only 10,000 dollars to invest in open space. It can invest now or wait five years and invest in the park after planning is finished. The planning cost was spent 5 years ago and cost 5,000 dollars. a. If the government waits to invest, how much money will it be able to spend in five years if the interest rate is 6%?
b. How much will it be able to spend in 5 years, with 10% interest rate?
c. How much will it be able to spend in 10 years, with 6% interest rate?
In: Finance
the bank is charging flat fee of 10 per car to park at rhe lot and there are hunderd space and lot is open from 6 pm to midnivht every night and is staffed by a single employee the employee is pad 10 per hour .the bank has indiactaed that maintenance cost are insignificant . identify the marginal revenue and marginal cost for each additional care thats oays to use the banks parking lot and exolain why the bank is able to set the fees as high as in contrast when the parking lot is available at all times
In: Economics
During the current year, Buffalo Construction trades an old crane that has a book value of $117,000 (original cost $182,000 less accumulated depreciation $65,000) for a new crane from Carla Manufacturing Co. The new crane cost Carla $214,500 to manufacture and is classified as inventory. The following information is also available. (Could you please show how you solve as well, not just the answers! Thanks!
Buffalo Const. Carla Mfg. Co.
| Fair value of old crane | $106,600 | |||||
| Fair value of new crane | $260,000 | |||||
| Cash paid | 153,400 | |||||
| Cash received | 153,400 |
If we assume this exchange is considered to have commercial substance, what are the journal entries on the books of (1) Buffalo Construction and (2) Carla Manufacturing.
If we assume this exchange lacks commercial substance for Buffalo, what are the journal entries on the books of (1) Buffalo Construction and (2) Carla Manufacturing.
If we assume this exchange is considered to have commercial substance except that the fair value of the old crane is $127,400 and the cash paid is $132,600, what would the journal entries on the books of (1) Buffalo Construction and (2) Carla Manufacturing.
If we assume this exchange lacks commercial substance for Buffalo, except that the fair value of the old crane is $126,100 and the cash paid $133,900, what would the the journal entries on the books of (1) Buffalo Construction and (2) Carla Manufacturing.
In: Accounting
Please use Visual Basic
Hotel Occupancy
The Hotel has 8 Floors and 30 rooms on each floor. Create an application that calculates the occupancy rate for each floor, and the overall occupancy rate for the hotel. The occupancy rate is the percentage of rooms occupied, and may be calculated by dividing the number of rooms occupied by the number of rooms.
For example, if 18 rooms on the 1st floor are occupied, the Occupancy Rate is as follows:
18/30=0.6 or 60%
For the Overall Occupancy Rate, using the above example,
18/(8*30)=0.075 or 7.5%
Another example for Overall Occupancy Rate:
If 1st floor, 18 rooms occupied.
2nd floor, 30 rooms occupied, then the calculation is:
(18+30) /(8*30) or (18+30)/240 =0.2 or 20%
You will need to use Name Constants for Rooms (30 rooms), and Floors (8 floors).
Some variables and Constants you will need to declare in class level to do the Overall Total and Overall Occupancy Rate calculation.
Some variables you will need to use in the local level.
The application’s form should appear similar to the one shown below.
In the form load event handler, use a loop to populate floor 1 to 8 in combo box. (Do NOT create floor 1 to 8 at design time using the Items property)
On startup, “Select the floor” combo box should default to floor 1. Each time the user enters the occupancy for a single floor and clicks the Save button, the floor number in the Drop-Down List ComboBox should increment automatically (just add 1 to its SelectedIndex property), and a new line should appear in the ListBox with the percentage occupancy. Also, the contents of the TextBox at the top of the form should clear automatically when the user clicks the Save button, so the user does not accidentally enter the same data twice in a row.
The Restart button should clear all the appropriate controls on the form. “Select the floor” combo box should default to floor 1.
The Exit button should end the application.
The Save button should do all input validation and all other calculations. (Do NOT use a loop in the btnSave_click event handler)
Input Validation: Be sure to check for a non-integer value in TextBox using the Integer.TryParse method and notify the user if there is an error. Since each floor has only 30 rooms, you need to do the range check to prevent user enter a value is greater than 30 or a negative number. A zero is allowed to input since it may have no occupancy for the whole floor.
Use the values below to confirm that your application is performing the correct calculations.
Use access key for all buttons’ control.
In: Computer Science
Please provide a step by step solution
create a Vacation Budget worksheet Add at least 6 other expenses
related to your planned vacation (car rental etc.) enter an
estimate of the cost of for each item Use a function to calculate
the total estimated costs. g) Enter a function to calculate the
average cost per day. h) Create a chart (you choose the type) in
this same worksheet based on this trip to display the estimated
costs. Add a title and a legend and format the chart in a
professional, easy read manner
| Estimated Vacation Expenses: | |||
| Item | Cost | Notes | |
| Airfare | |||
| Hotel | |||
| Food | |||
In: Accounting
The following data were summarized from the accounting records for Caterpilar Inc (only for Construction Industries segment and Resource Industry segment) for the year ended December 31, 2018:Cost of goods sold:Construction Industries$912,250 Resource Industry423,675Administrative expenses:Construction Industries$149,800 Resource Industry128,625Service department charges: Construction Industries$112,560 Resource Industry67,830Sales: Construction Industries$1,354,500 Resource Industry743,780Prepare divisional income statements for Caterpilar Inc
What is the purpose of the Balanced Scorecard? How might Caterpilar Inc utilize it? (Include an explanation for all four performance metrics)Explain transfer pricing. What are the advantages to the company of utilizing the negotiated price approach
In: Accounting
Hilton Hotel Vs Mariott Hotel
Hilton Worldwide Holdings Inc. (Hilton), a global class hotel
operating out of 113 countries and
territories as of 2018, had a portfolio of 16 world class brands
consisting of 5,000 properties. The
debate continues on whether Hilton can survive and thrive in the
new age of travel and the
growing trend of e-commerce in the world. Hilton was able to
differentiate itself from other
global hotels because of its unique employee centric HR practices
like their recruitment, on
boarding, and training processes.
The leadership at Hilton believed in attracting, hiring, and
retaining employees. This made
business sense because these employees would service their guests
better. Over the years, the
company created a culture of high engagement of employees who went
out of their way to
delight customers. Hilton employed a truly diverse workforce across
a variety of positions in its
hierarchical structure ranging from valet to cleaning personnel,
restaurant servers, concierge
providers, and managers which were recruited using global
recruiters who were able to recruit a
large number of talented employees. The management kept its focus
on the human aspect in
order to become profitable. The hotel was successful because it
gave each its employee a special
work culture about caring for each other. The management felt that
its continued focus on HR
policies and practices had acted as a competitive advantage for
them...
Marriott, a hospitality giant, had a huge association with social
media which generated a huge
response from its followers. Using a team structure and empowered
self-managed teams,
Marriott was able to respond to global changes and to increase its
flexibility by attracting on line
customers.
The Facebook page of Marriott attracted 1,874,121 likes and
4,041,532 visits while its Twitter
account was followed by 171,842 people as on March 2015. Its major
move into gamification
came when it introduced a game on Facebook in 2011 for recruiting
people, a game called ‘My
Marriott Hotel' as part of its recruitment gamification
strategy on its Facebook jobs and careers
page. Mariott had earlier released a game named ‘Xplor'
which gave players a virtual experience
of touring five gateway cities and solving challenges which led to
their earning rewards that
could be redeemed against their stay in Marriott hotels. The
company also tried its hand at
different apps like ‘Red Coat Direct', ‘Workspace on
Demand', and ‘The Perfect Travel
Companion' in order to provide fast and convenient services
at the customer's fingertips. Players
were then directed to Marriott's official recruiting page
where they could submit their resumes
for a suitable position.
1-What HR Practice helped Hilton Hotel overcome the
Globalization challenge?
2- How is Hilton hotel differentiating itself globally?
3-In your opinion, which hotel is applying a prospector strategy
and why?
4-Clearly identify the recruitment sources used by Hilton hotel and
Marriott hotel and why in
your opinion they are using them?
In: Operations Management
Current Situation
You are and Vice President and CFO at Warrington Regional Hospital, a not-for-profit tertiary care facility with 225 beds located in a growing city in Southern California. The chair of the board of directors has informed you that the board, in concert with local community and political leadership, believes the hospital should consider expanding services. They want you to analyze the financial feasibility of either building an ambulatory orthopedic center on a parcel of land located 31 miles northeast of the hospital near a large housing development currently under construction or adding a new wing containing 25 beds onto the hospital. The land for the new ambulatory orthopedic center is owned by the county and they have indicated a willingness to lease it to the hospital for $1 per year on a 99-year lease. On the surface, both projects appear to be sound investments but only one can be undertaken. Before deciding, the board and other stakeholders want to understand the financial consequences of the alternatives and expect a recommendation based on the analysis.
The Board’s Requirements
The board is requesting a study covering the first 5 years of the new initiative, including construction time. At a minimum, the board seeks the NPV and IRR for each option. Detail should be calculated and presented at the annual level. Ultimately, the board is looking for your recommendation with a detailed supporting explanation. How you choose to summarize your recommendation has not been specified but the more clearly you present your findings, the better it will be received. The material should be prepared as if it will be given to the Board of Directors for their consideration and decision.
Your Approach
You assemble a team from your finance and administrative staff and begin by preparing a work plan showing the steps you will follow to meet the objective. A critical early step will be to estimate cash flows (revenues and expenses) for the first five years of each alternative (including the year for construction). In addition, the team must make and document key assumptions that will be used in the analysis. After working on the problem for 30 days, the team publishes its financial projection data assumptions for comment. Once the discussions with key stakeholders have concluded, these data are finalized, and the analysis commences. The approved data is summarized in the table that follows. Note that if you believe there are assumptions missing you are free to define and use reasonable ones in your work, however they must be specifically identified and justified.
Warrington Regional Hospital
Financial Assumptions
|
New Wing Assumptions |
Orthopedic Center Assumptions |
||
|
Cost to construct and equip |
$11,250,000 |
Cost to construct and equip |
$2,500,000 |
|
Months to construct and equip |
12 |
Months to construct and equip |
12 |
|
Avg. occupied beds per mo. in year 1 |
9 |
Avg. patient visits per mo. in year 1 |
300 |
|
Revenue per occupied bed per mo. in year 1 |
$69,000 |
Revenue per patient per visit in year 1 |
$1,900 |
|
Fixed cost per mo. |
$46,800 |
Fixed cost per mo. |
$9,400 |
|
Variable cost per mo. per occupied bed |
$1,400 |
Variable cost per visit per mo. |
$850 |
|
Annual rate of increase for all costs |
2.5% |
Annual rate of increase in all costs |
2.5% |
|
Annual rate of increase in the occupancy rate |
2.3% |
Annual rate of increase in number of visits |
2.4% |
For both options, assume that:
In: Accounting