A shipment of 6 television sets contains 2 defective sets. A hotel makes a random purchase of 3 of the sets. If x is the number of defective sets purchased by the hotel, find the cumulative distribution function of the random variable X representing the number of defective. Then using F(x), find
(a)P(X= 1) ;
(b)P(0< X≤2).
In: Statistics and Probability
1-If you were the manager of a luxury hotel with 300 rooms and different types of restaurants, what functionalities would you want from the PMS? Give examples for the integration between the PMS and three other IT systems.
2-Give examples of other channels that you will use to sell the hotel and how the PMS will help you to manage those channels?
In: Operations Management
Acquisition Cost of Long-Lived Assets
The following items represent expenditures (or receipts) related to the construction of a new home office for Lowrey Company.
| Cost of land site, which included an old apartment building appraised at $75,000 | $166,000 |
| Legal fees, including fee for title search | 2,200 |
| Payment of apartment building mortgage and related interest due at time of sale | 9,400 |
| Payment for delinquent property taxes assumed by the purchaser | 4,100 |
| Cost of razing the apartment building | 18,000 |
| Proceeds from sale of salvaged materials | (3,900) |
| Grading to establish proper drainage flow on land site | 2,000 |
| Architect's fees on new building | 310,000 |
| Proceeds from sales of excess dirt (from basement excavation) to owner of adjoining property (dirt was used to fill in a low area on property) | (3,000) |
| Payment to building contractor | 6,000,000 |
| Payment of medical bills of employee accidentally injured while inspecting building construction | 2,400 |
| Special assessment for paving city sidewalks (paid to city) | 19,000 |
| Cost of paving driveway and parking lot | 26,000 |
| Cost of installing lights in parking lot | 10,200 |
| Premium for insurance on building during construction | 8,500 |
| Cost of open house party to celebrate opening of new building | 9,000 |
Required
From the given data, calculate the proper balances for the Land, Building, and Land Improvements accounts of Lowrey Company.
| Land | |
| Building | |
| Land Improvements |
In: Accounting
Utah Enterprises is considering buying a vacant lot that sells for $1.8 million. If the property is purchased, the company's plan is to spend another $6 million today (t = 0) to build a hotel on the property. The after-tax cash flows from the hotel will depend critically on whether the state imposes a tourism tax in this year's legislative session. If the tax is imposed, the hotel is expected to produce after-tax cash inflows of $810,000 at the end of each of the next 15 years, versus $1,710,000 if the tax is not imposed. The project has a 14% cost of capital. Assume at the outset that the company does not have the option to delay the project. Use decision-tree analysis to answer the following questions. What is the project's expected NPV if the tax is imposed? Negative value, if any, should be indicated by a minus sign. Do not round intermediate calculations. Round your answer to the nearest cent. $ What is the project's expected NPV if the tax is not imposed? Negative value, if any, should be indicated by a minus sign. Do not round intermediate calculations. Round your answer to the nearest cent. $ Given that there is a 50% chance that the tax will be imposed, what is the project's expected NPV if the company proceed with it today? Negative value, if any, should be indicated by a minus sign. Do not round intermediate calculations. Round your answer to the nearest cent. $ Although the company does not have an option to delay construction, it does have the option to abandon the project 1 year from now if the tax is imposed. If it abandons the project, it would sell the complete property 1 year from now at an expected price of $7.8 million. Once the project is abandoned, the company would no longer receive any cash inflows from it. If all cash flows are discounted at 14%, would the existence of this abandonment option affect the company's decision to proceed with the project today? Assume there is no option to abandon or delay the project but that the company has an option to purchase an adjacent property in 1 year at a price of $2 million. If the tourism tax is imposed, then the net present value of developing this property (as of t = 1) is only $300,000 (so it wouldn't make sense to purchase the property for $2 million). However, if the tax is not imposed, then the net present value of the future opportunities from developing the property would be $4 million (as of t = 1). Thus, under this scenario it would make sense to purchase the property for $2 million. Given that cash flows are discounted at 14% and that there's a 50-50 chance the tax will be imposed, how much would the company pay today for the option to purchase this property 1 year from now for $2 million? Negative value, if any, should be indicated by a minus sign. Do not round intermediate calculations Round your answer to the nearest cent. $
In: Finance
In: Economics
Q4 Hotel California has 160 rooms. The hotel has an ample low-fare demand at the room rate of $200 per night, but the demand from the high-fare class which pays $450 per night on average, is uncertain. Table below shows the number of high-fare rooms that were booked during the past 30 days. How many rooms should Hotel California protect for high-fare customers to maximize its expected revenue? (6 points)
|
Number of high-fare rooms |
Frequency |
|
0 |
5 |
|
1 |
3 |
|
2 |
6 |
|
3 |
8 |
|
4 |
4 |
|
5 |
1 |
|
6 |
1 |
|
7 |
2 |
|
Total=30 |
In: Operations Management
1. You are opening a carnival. Building the carnival will cost $15M dollars, and the carnival will produce EBIT of $3M per year for the foreseeable future. Your tax rate is 28%, your cost of unlevered equity is 11%, and your cost of debt is 6%. In order to boost teen employment, the State of Kansas is offering you an $8M perpetual loan with an interest rate of 5%, but applying for this loan will incur administrative costs of $500,000.
A) What is the NPV of this amusement park if you do not accept the loan?
B) What is the NPV of the loan you are being offered?
C) What is the NPV of this project using the APV method?
In: Finance
You run a hotel with 200 rooms. Fixed daily cost is $1500 which includes staff salary and property charges, maintenance cost of hospital is additional $300 daily. Variable cost per room is $15 which includes cleaning, utility cost etc. You charge $100 per room per day. You sold 50 rooms today, how much profit did you earn.
a) 2000, b) 3000, c) 2500, d) 2450
You run a hospital with 100 rooms. Fixed daily cost is $1000 which includes staff salary, property charges, maintenance etc. Variable cost per room is $10 which includes cleaning, equipment rentals, utility cost etc. You charge $50 per room per day. You sold 30 rooms today, how much revenue did you earn.
a) 1500, b) 500, c) 5000, d) 100
A vendor sells hotdogs at $15 /piece. For every hot dog he spends $12 in the raw material. Additionally, he spends $1 for packing each hotdog and monthly $50, $20, $10 as food truck rent, electricity and other expenses respectively. How much is the vendor contributing to covering his fixed costs or generating profits (contribution margin)?
a) 2, b) 5, c) 6, d) 3
In: Finance
Differentiate between the firm's implicit and explicit cost and discuss the firm’s variable and fixed costs. For your chosen industry please express whether your firm is economically viable or not. Is your firm profitable? Do they have an optimistic or uncertain outlook for the near future?
In: Economics
Sarah has a three-day meeting in Berlin. She takes an overnight flight arriving early Sunday morning.After resting several hours, she spends the rest of the day sightseeing. She attends the meetings onMonday, Tuesday, and Wednesday. She spends Thursday sightseeing and returns home on Friday. Her transportation cost $1,200 and her five night’s hotel cost $1,250. Her meals were $50 per day fromMonday through Thursday and $30 each on Sunday and Friday. How much can Sara deduct for thisbusiness trip?
In: Accounting