A 100 room hotel was projected to cost $10,000,000. The hotel would have fixed annual costs of
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A 100 room hotel was projected to cost $10,000,000.
The hotel would have fixed annual costs of $2,000,000 and an overall Net Income margin on variable costs (only) of 63%.
The market portion of the feasibility study indicated that the REVPAR for this market was projected to be $82.50 in year 1, $85.00 in year 2, and $87.00 in year 3.
Is this hotel a feasible investment over this three year period? Show your calculations.
Expert Answer:
To determine if the hotel is a feasible investment over the threeyear period we need to calculate th... View the full answer
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