Use Excel to answer the following question:
Sundance Detective Agency purchased new surveillance equipment with
the following estimates. Note: The year index is k = 1, 2, 3, ...
to calculate the maintenance costs and extra revenues for the
corresponding years.
| First cost ($) | 1,050 |
| Annual maintenance cost ($ in year k) | 70 + 5k |
| Extra revenue ($ in year k) | 200 + 50k |
| Salvage value ($ at the end of the useful life) | 600 |
(a) Prepare a cash-flow (CF) table, do present worth (PW) analysis
using an appropriate Excel built-in function to calculate the
discounted payback period x with a return of 10% per year.
(b) For a preliminary conclusion, should the equipment be purchased
if the actual useful life is 7 years? Comment.
In: Economics
The catering manager of LaVista Hotel, Lisa Ferguson, is disturbed by the amount of silverware she is losing every week. Last Friday night, when her crew tried to set up for a banquet, they did not have enough knives. She decides she needs to order some more silverware, but wants to take advantage of any quantity discounts her vendor will offer.
>For a small order (2,000 pieces or less) her vendor quotes a price of $1.80/piece.
>If she orders 2,001 to 5,000 pieces, the price drops to $1.60/piece.
>5,001 to 10,000 pieces brings the price to $1.40/piece, and
>10,001 and above reduces the price to $1.25/piece.
Lisa's order costs of $205 per order, her annual holding costs are 5%, and the annual demand is 44,600 pieces. For the best option, (the best option is the price leve that results in an EOQ within the acceptable range).
A) What is the optimum ordering quantity?
B) What is the annual holding cost?
C) What is the annual ordering cost?
D) What are the annual cost of the silverware with an optimal order quantity?
E) What is the total annual cost, including ordering, holding, and purchasing the silverware?
In: Operations Management
The following facts are known:
Cost of the expansion $2,000,000
The Manager is paid $90,000 per year. Compensation will not change due to the expansion
Property taxes will increase by $33,000 annually
The expansion will add 10 rooms and it is expected all 10 will be occupied by paying guests
The addition of the 10 guests each day is expected to add $750,000 of revenue annually
A garden and patio that was built last summer at a cost of $65,000 will be removed to make way for the expansion.
Additional cost of staff based on 10 occupied rooms is $250,000 annually
Additional cost of supplies and food based on 10 occupied rooms $80,000 annually
All expenses are expected to increase 3% annually. Due to competition revenue is expected to increase only 2% annually.
The useful life of the expansion is 8 years. Bradford uses a 9% discount rate.
Create an 8 year proforma cash flow statement for the expansion project (assume there are no income taxes)
In: Finance
Heating, Ventilating and Air Conditioning (HVAC) Systems create and maintain the levels of comfort required by guests and employees. HVAC systems must be properly selected, operated and maintained if they are they are to provide an appropriate level of comfort.
How do you think a hotel building stays cool?
In: Operations Management
Discuss four risks that your company is likely to be exposed to if it goes ahead with debt finance as a source of finance and explain with 5 points how this decision will affect the return to the equity holders or shareholders of your company (hotel) following the arguments of M&M proposition 2.
In: Finance
In: Economics
Define each of the following resources.
7.1. Central park:
7.2. I-95 interstate thruway from Maine to Florida:
7.3. Fish in a stream in NY State:
7.4. US Navy medical hospital supply ship now docked in NYC:
7.5. Zoom:
In: Economics
How can TV Networks and Broadway
plays use revenue management?
"Revenue management is an extremely important concept within the hospitality industry, because it allows hotel owners to anticipate demand and optimise availability and pricing, in order to achieve the best possible financial results"
In: Finance
"Arrival and Registration" Briefly describe a hotel with which you are familiar and make at least one recommendation for improvement regarding its registration procedure. come up with a way to mitigate the frustration customers feel when they need to wait at registration. Please be as creative as you like.
In: Operations Management
Create a Database Schema for a hotel reservation system. indicate the Primary Keys, Foreign Keys, and the one-to-one or one-to-many relationships between the tables. Also describe in a small paragraph the scope of the back-end database, by explaining the different tables and their relations in your schema.
In: Computer Science