Home Insert Draw Formulas Data Review View File Read Only- You can't save changes to this file 1 Chapter 8, Bonus Question 8 Jerry's new hotel Hotel construction costs Number of rooms Mortgage payments Non-operating expenses Occupancy Per room expense @ 60% occupan Undistributed operating expense F&B operating income All other non-rooms operating income Target investment return Tax rate $8,000,000 200 $750,000 $250,000 60% $45.00 1,000,000 $125,000 $50,000 12% 40% cy 10 12 13 14 15 16 17 18 19 20 21 Step 1. Calculate the hotel's target before-tax net income. Owner's investment ROI After-Tax Net Income After-Tax Net Income 23 24 Before-Tax Net Income Q 1 Q 3 Bonus Question 8