The Sorrento Hotel is a four star hotel in downtown Montreal
The Sorrento Hotel is a four-star hotel in downtown Montreal. The hotel’s operations vice- president would like to replace the hotel’s antiquated computer terminals at the registration desk with attractive state-of-the-art flat-panel displays. The new displays would take less space; consume less power; and provide additional security, since they can be viewed only from a restrictive angle. The new computer displays would not require any new wiring. The hotel’s chef believes the funds would be better spent on a new bulk freezer for the kitchen.
For each of the items below, indicate by placing an X in the appropriate column whether it should be considered a differential cost, an opportunity cost, or a sunk cost in the decision to replace the old computer terminals with new flat-panel displays. If none of the categories apply for a particular item, leave all columns blank. The first item has been completed as an example:
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