Part 1:

Park Co. is considering an investment that requires immediate payment of $29,500 and provides expected cash inflows of $14,400 annually for four years. What is the investment's payback period?

Part 2:

Park Co. is considering an investment that requires immediate payment of $21,530 and provides expected cash inflows of $6,500 annually for four years. If Park Co. requires a 7% return on its investments.

1-a. What is the internal rate of return? (PV of $1, FV of $1, PVA of $1, and FVA of $1) (Use appropriate factor(s) from the tables provided. Round your present value factor to 4 decimals.)

Part 3:

Peng Company is considering an investment expected to generate an average net income after taxes of $3,400 for three years. The investment costs $50,400 and has an estimated $10,200 salvage value.

Assume Peng requires a 10% return on its investments. Compute the net present value of this investment. Assume the company uses straight-line depreciation. (PV of $1, FV of $1, PVA of $1, and FVA of $1) (Use appropriate factor(s) from the tables provided. Negative amounts should be indicated by a minus sign.)

40. What is a typical Day of Arrival (DOA) and pattern for Special Corp customers?

1. Sunday through Wednesday
2. Monday through Thursday
3. Sunday through Thursday
4. Tuesday through Friday

41. What is the typical BMF that management companies get?

a. 3%

b. 5%

c. 2%

d. within 30 days they start getting 3%

42. On the STR report, if the development funnel/ pipeline is strong showing a lot of rooms are being developed what might it indicate?

a. Your brand is has strong preference

b. Owners Priority is being made occasional across the portfolio

c. Owners Priority is being made more quickly than other hotel’s mgt. companies’ brands

d. a and c

42.   When driving sales, revenue management in a group hotel should shrink the hotel by adding great groups, as far out as reasonably possible, know based on history what the cross over goal should be, as long as the groups have what?

a. The right number of customers

b. The right average rate

c. The largest total spend possible

d. The use the banquet and outlet space occasionally

43. If a hotel has a lot of great group room nights on the books in years out, it also allows revenue management to do what important strategy?

a. Open discounts

b. Close out discounts

c. Close out all corporate, association, and other group.

d. focus on driving transient higher rates

Last week we learned more about important concepts in the area of Distribution and about the job of Revenue Manager. Two of the most heavily negotiated points in the distribution channel agreements are Last Room Availability and Rate Parity. Which of these do you feel is the most beneficial to the hotel, and why?

4. Understanding the facts/background of a transaction: Caesars Entertainment is in negotiations to purchase a new hotel. You are an analyst in the accounting policy department and are in the first step of the research process (understanding the facts/background of the transaction). Identify three resources you could consult to gather additional background/precedent for this issue.

"The City Ledger"

define what city-ledger, then categories and discussed/ create a list of best practices for a hotel chain of your choice. (Be sure to briefly describe the chain in your response.)

Analyze the mechanics of the entry and make at least one recommendation for improving the process. Please be as creative as you like.