In this casc, you will use the CAPM model and comparable firms to estimate the weighted average cost of capital $($WACC$)$ for a company and each of its divisions. You will then make capital budgeting decisions based on your estimated cost of capital and the cash flow projections of three projects as listed below.

$\backslash$table$[[,\backslash$table$[[$Expected$],[$life $($yrs$)]],\backslash$table$[[$Initial investment$],[($Smillion$)]],\backslash$table$[[$After$-$Tax Annual$],[$cash flow$],[($Smillion$)]]],[\backslash$table$[[$Opeject three new hotels in$],[$Pittsburgh$,$ PA$]],30,4\mathrm{.}3,0\mathrm{.}8],[\backslash$table$[[$Provide catering for American$],[$Airlines$]],30,2\mathrm{.}8,0\mathrm{.}5],[\backslash$table$[[$Open $10$ Hot Shoppers$],[$restaurants in Houston. Texas$]],10,5\mathrm{.}2,1]]$

As a starting point. I suggest vou to review the PowerPoint lecture slides for Session $3$ an associated learning materials $($which may include recorded class videos$),$ which are closel related to the case,

Cour report should clearly show the hurdle rates $($another name for WACC$)$ that you wou ecommend for Marriott as a whole, and for each of its three divisions.

$1$