Michael Wilson entered into a new business, hotel ownership, by buying a small 24 room hotel and café. The hotel is located in a remote area of Minnesota that is popular for tourists. Michael has hired you for advice.

Michael hired a young couple to run the hotel and café on a daily basis and plans to pay them a monthly salary. They will live for free in a small apartment adjacent to the office. The couple will be responsible for hiring and supervising five part-time personnel who will help with cleaning the rooms, cooking, waiting on customers in the café. The couple will maintain records of rooms rented, meals served, and payments received. They will also make weekly deposits.

Mike is concerned about his lack of control over the records and operations. Mike lives 5 hours away and will only be able to make periodic visits. Mike trusts the couple but wonders if it makes sense to place so much trust in employees.

Mike needs your help to identify possible ways that his motel and café could be defrauded and especially wants assistance to devise creative internal controls to help prevent or detect fraud.

Required

1. What are your two biggest concerns related to possible fraud for the hotel part of the business.   For each concern describe two controls that could reduce the risk.
2. What are your two biggest concerns related to the café part of the business. For each concern describe to controls to reduce risk.

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?

.

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.)

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)

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