1. Suppose that there are only three people that live in a (very) small town: Eric, Greg, and Katie. The town is thinking of building a park which you can assume is a public good for these three individuals in the town. Based on the individuals’ demand schedules for the park, which are given below, calculate and graph the social marginal benefit curve for the park.

b. Assume that the supply curve for the park is shown in the following chart. Graph this supply curve on your graph from part b. What is the socially optimal size of the park (in acres)?

any have SWOT for shangrila hotel?

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WHAT IS A LUXURY HOTEL? WHY DO THEY CHARGE A HIGHER PRICE THAN OTHER HOTELS? WHY DO CUSTOMERS PAY THIS HIGHER PRICE? WHAT IS YOUR EXPERIENCE OF A LUXURY HOTEL? DISCUSS WITH REAL LIFE EXAMPLES

WRITE AN ESSAY OF 500 - 1000 IN YOUR WORDS COVERING ALL THESE QUESTIONS AND POST YOUR ANSWER DIRECTLY ON SCHOOLOGY, THANK YOU.

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).

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?

J. Morgan of SparkPlug Inc. has been approached to take over a production facility from B.R. Machine Company. The acquisition will cost $1,960,000, and the after-tax net cash inflow will be $330,000 per year for 12 years.

SparkPlug currently uses 10% for its after-tax cost of capital. Tom Morgan, production manager, is very much in favor of the investment. He argues that the total after-tax net cash inflow is more than the cost of the investment, even if the demand for the product is somewhat uncertain. “The project will pay for itself even if the demand is only half the projected level.” Cindy Morgan (corporate controller) believes that the cost of capital should be 13% because of the declining demand for SparkPlug products.

Required:

1. What is the estimated NPV of the project if the after-tax cost of capital (discount rate) is 10%? Use the built-in NPV function in Excel. (Negative amounts should be indicated by a minus sign. Round your answer to the nearest whole dollar amount.)

2. What is the estimated NPV of the project if the after-tax cost of capital (discount rate) is 13%? Use the built-in NPV function in Excel.  (Negative amounts should be indicated by a minus sign. Round your answer to the nearest whole dollar amount.)

3. Use the built-in function in Excel to estimate the project’s IRR. (Round your answer to 1 decimal places.)

4. Do a sensitivity analysis by using GOAL SEEK to determine, given estimated cash inflows, the original investment outlay that would result in an IRR of 13%. (Round your answer to nearest whole dollar amount.)

Which of the following would be included in inventory? Yes or No

(a) Raw materials costs of leather to a manufacturer of leather furniture

(b) The cost of cans of corn held on the shelves of a grocery store

(c) The cost of a truck in the process of being manufactured by an automobile manufacturer

(d) The cost of land being held for development to a property developer

(e) The cost of a van being used as a courtesy vehicle to an automobile service centre

(f) The costs of construction for a home being built for a specific customer to a builder

(g) The cost of soap and paper towels for the washrooms of a restaurant

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)

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?