Questions
Busan Resort Hotel: Valuing an Independent Capital Project Harris Ford, General Manager of Busan Resort Hotel,...


Busan Resort Hotel: Valuing an Independent Capital Project
Harris Ford, General Manager of Busan Resort Hotel, paced his office and considered to expand the business by opening a karaoke pub and will name it Beach Karaoke Pub. The project will require an up-front investment of US$750,000. This represents the cost of a modern-style décor. Other capital investment, including chairs, bar tables, kitchen set-up and karaoke equipment, will cost US$100,000. Michael expects revenue to be generated 50% from walk-ins and 50% from hotel guests. Total sales are estimated to be US$740,950 for the first year of operation. Michael arrives at this figure by assuming an average of 70 covers per day with an average check of US$29. With a seating capacity of 35, the pub has to turn tables at least twice a day. Operating hours of the pub will be from 5:00 p.m. to midnight. The projected length of the project is six years and sales are expected to grow at 5% annually.
Michael’s estimates for operating costs are as follows:
Food and beverage costs
25% of sales
Salaries
16% of sales
Other operating expenses
22% of sales
Depreciation:
Equipment & furniture depreciated equally over the life of the project using the straight-line method; with zero salvage value at the end
Annual capital expenditure
Equaled depreciation (Same with depreciation cost)
Michael estimates that salary expenses will account for 16% of sales. Staff can be recruited internally because the hotel has excess manpower at this point. The excess staffs has long-term contracts with the hotel and are kept in order to meet the demands of the growing business. Repairs and maintenance costs will account for 2% of sales. The interest rate or required rate of return is 12% and the corporate tax rate in Busan is 30%
3. Introduction
4. Purpose of the study/project
5. Case study overview
6. Calculation of the project
a) Net Investment (NINV)
b) Net Cash Flows (NCFs)
c) Payback Period (PP)
d) Net Preent Value (NPV)
e) Internal rate of return (IRR)
7. Analysis
8. Decision
9. Conclusion
10. References
11. Appendix

In: Finance

suppose that a hotel has 100 rooms and the hotel is accepting overbooking anticipating some cancellations....

suppose that a hotel has 100 rooms and the hotel is accepting overbooking anticipating some cancellations. The probability for cancellation is 0.07.

a) What is the probability that somoen who made a reservation will be turned away if this hotel has allowed for 110 resevations?

b. 105 reservation

c. why did the answer to part b go down

In: Statistics and Probability

-Pick two of the principles of green chemistry, state which 2 you chose and show how...

-Pick two of the principles of green chemistry, state which 2 you chose and show how they connect to your life or intended profession. Please be very clear (as in overtly) as to which two you are selecting so that I am sure to recognize the connections you are making.

-How has the Tragedy of the Commons affected you or your family? For example, when one of the creators of this course (Ted Picciotto) was younger, he and his father would see quail frequently in the state park near their home. Since then they have all but disappeared. Only recently has the population begin to rebound very slightly. If you are not old enough to remember a change in the environment, interview a parent or grandparent if possible.

-How have your studies to date prepared you for the future world in which you live? In what ways do you think your study of chemistry will prepare you?

In: Chemistry

Please use IRAC. 1. Bob, a sole proprietor, owns a well-know aquatic park in the city...

Please use IRAC.

1. Bob, a sole proprietor, owns a well-know aquatic park in the city of Bakersfield. One day, one of Bobs worst employees was messing around with the music system set up in the back. Without acknowledgement, Bob’s worst employee tripped on a wire and accidentally cut the wire to the point were there was a dangerous shortage. John, Bob’s newest employee noticed the accident and immediately notified Bob. Without taking a second look, Bob told John, “I am sure it’s not big deal, just get back to work.” Next week, a child was playing near the pool in the back and when jumping in the pool, the child tripped on the cord and got electrocuted. The child had 3rd degree burns resulting in a hospital bill of $160,000. The child’s mother consults with you and asks whether they have a personal injury claim against Bob, even though it was Bob’s employee’s fault?

Please use IRAC.

In: Accounting

What is the difference between a management contract, a brand, and a hotel franchise agreement? Are...

What is the difference between a management contract, a brand, and a hotel franchise agreement? Are all three necessary to run a successful hotel?

In: Economics

Multiple-Step Income Statement On March 31, 20Y9, the balances of the accounts appearing in the ledger...

Multiple-Step Income Statement

On March 31, 20Y9, the balances of the accounts appearing in the ledger of Royal Furnishings Company, a furniture store, are as follows:

Accounts Receivable $170,000 Inventory $1,019,950
Accumulated Depreciation—Building 762,600 Notes Payable 273,300
Administrative Expenses 559,700 Office Supplies 19,950
Building 2,619,300 Retained Earnings 1,337,850
Cash 166,750 Salaries Payable 7,900
Common Stock 291,750 Sales 6,440,950
Cost of Goods Sold 3,769,900 Selling Expenses 709,650
Dividends 172,550 Store Supplies 93,100
Interest Expense 10,150

a. Prepare a multiple-step income statement for the fiscal year ended March 31, 20Y9.

Royal Furnishings Company
Income Statement
For the Year Ended March 31, 20Y9
Sales $
Cost of goods sold
Gross profit $
Expenses:
Selling expenses $
Administrative expenses
Total expenses
Operating income $
Other expense:
Interest expense
Net income $

2.  

Beginning inventory, purchases, and sales for an inventory item are as follows:

Sep. 1 Beginning Inventory 24 units @ $21
5 Sale 14 units
17 Purchase 26 units @ $23
30 Sale 27 units

Assuming a perpetual inventory system and the first-in, first-out method:

a. Determine the cost of the goods sold for the September 30 sale.
$

b. Determine the inventory on September 30.
$

3.

Asset turnover ratio

Financial statement data for years ended December 31, 20Y3 and 20Y2, for Edison Company follow:

20Y3 20Y2
Sales $1,749,000 $1,512,000
Total assets:
  Beginning of year 770,000 670,000
  End of year 820,000 770,000
a. Determine the asset turnover ratio for 20Y3 and 20Y2. Round answers to one decimal place.
20Y3 20Y2
Asset turnover
b. Is the change in the asset turnover ratio from 20Y2 to 20Y3 favorable or unfavorable?

In: Accounting

EXERCISE 4‐2 Workpaper Eliminating Entries, Cost Method LO 5 Park Company purchased 90% of the stock...

EXERCISE 4‐2 Workpaper Eliminating Entries, Cost Method LO 5 Park Company purchased 90% of the stock of Salt Company on January 1, 2019, for $465,000, an amount equal to $15,000 in excess of the book value of equity acquired. This excess payment relates to an undervaluation of Salt Company's land. On the date of purchase, Salt Company's retained earnings balance was $50,000. The remainder of the stockholders' equity consists of no‐par common stock. During 2023, Salt Company declared dividends in the amount of $10,000, and reported net income of $40,000. The retained earnings balance of Salt Company on December 31, 2022, was $160,000. Park Company uses the cost method to record its investment. Required: Prepare in general journal form the workpaper entries that would be made in the preparation of a consolidated statements workpaper on December 31, 2023.

In: Accounting

A hotel manager claims that the average of the pricethat customer will pay to stay...

A hotel manager claims that the average of the price that customer will pay to stay at their hotel is 500. At α = 0.01 is the claim realistic? The data on the price per night for a sample of six rooms in the hotel are shown.

Price per
night 713   300    292    311    598    401    618

Give a reason why the claim might be deceptive.

In: Statistics and Probability

this is for a project management assigment and it is about the development of a public...

this is for a project management assigment and it is about the development of a public park and wich is funded by the city

the assigment requires that the table be filed out

[Project Name] united park Communication Plan

Project Manager: jhon oliver

This communication plan describes our strategy for keeping the project’s stakeholders sufficiently informed to avoid any disappointment regarding cost, schedule, or quality goals.

Stakeholder

Information needs

Frequency

Medium

Response

[name]

  • [type of information]
  • [type of information]
  • [type of information]

[daily, weekly,

monthly]

  1. [medium 1]
  2. [medium 2]

[describe]

[name]

  • [type of information]
  • [type of information]
  • [type of information]

[daily, weekly,

monthly]

  1. [medium 1]
  2. [medium 2]

[describe]

In: Operations Management

Dantley's Furniture manufactures rustic furniture. The cost accounting system estimates manufacturing costs to be $230 per...

Dantley's Furniture manufactures rustic furniture. The cost accounting system estimates manufacturing costs to be $230 per table, consisting of 85% variable costs and 15% fixed costs. The company has surplus capacity available. It is Back​ Forrest's policy to add 55% markup to full costs. A large hotel chain is currently expanding and has decided to decorate all new hotels using the rustic style.​ Dantley's Furniture Incorporated is invited to submit a bid to the hotel chain. What is the lowest price per unit​ Dantley's Furniture should bid on this long- term order ?

Choices : A. $230

B. $196

C. $357

D. $161

In: Accounting