In this project you are asked to conduct $($using Excel$)$ an analysis of a capital expenditure project proposed for an actual hospitality operation of your choosing. The project will be broken into two parts: $1)$ The preliminary project description and $2)$ the actual capital expenditure analysis. While you may make $($reasonable$)$ assumptions about the actual cash flows of the hospitality operation where your proposed project is to be undertaken, you must come up with accurate investment and operating cash flow estimations for the project itself. This will involve using sources and references outside of class reading materials. For example, if your proposed project is the replacement of your operation's present dish machine with a new one, you must propose a specific dish machine brand and model with a realistic estimate of the actual savings and costs associated with that brand model. This will entail library and, perhaps, internet research. Any references that you use in your analysis, whether direct quotes or restated in your own words, must be documented in an appropriate bibliography section. Failure to adequately document your sources and material will severely penalize your score on the project.

Preliminary Project Description

In the preliminary project description, you will describe the actual hospitality operation where you propose to implement your project and describe your project in detail. You will also justify the need for the project, discuss what its value creating aspects are, and provide specific details of all assets and services needed to implement the project. This section will also include the specific documented costs associated with the purchase of the assets, services, and other expenditures associated with implementing the project. The format of your written document is to be business professional. That means that it should be put together with appropriate sections, bullets, graphs, charts, references, etc. as if you are presenting it at a staff meeting or to your General Manager. At a minimum, your written document should include the following $($please feel free to add additional items as you see fit$)$:

A three to five$-$page introduction describing your hospitality company.

This should include the name, location, and a detailed description of your company. You should also include a discussion of what you think the outlook is for the demand for the goods and services that your company produces and sells over the next $5$ years $($document this discussion with appropriate references$).$

A description of the project that you propose to implement at your hospitality company.

This should include a general description of the project and why you think that it will create value for your company. You should carefully justify and document $($where possible$)$ why you think that it is a desirable project and how it will create value for your company $($be sure to address any appropriate value creation principles that we have discussed in class in this discussion$).$ You should tie your discussion in this section together with your projections of demand for your company's goods and services from Part $1$ above.

A detailed and documented description of the specific costs associated with the purchase of the assets, services, and other expenditures associated with implementing the project.

Here you need to provide an inclusive list with associated costs of all of the equipment, materials, and other supplies that will initially be needed to implement your project. With equipment, you must be specific as to brand and model $($and justify why you picked the particular brand and model that you chose$).$ You must also detail and provide approximate costs of any labor or services that will be employed to implement your project $($these are expenses related to installing, building, or implementing the project $-$ NOT expenses related to the operation of the project after all of the necessary initial equipment and assets have been purchased and installed.$)$

Additional Specific Instructions:

Make sure that you explain the analysis of your project and company clearly and completely. Your discussion should be clear and convincing.

You must use references to document any facts that you refer to$.$ Place a bibliography at the end of your paper giving the complete citation of any reference that you use.

Project Valuation Analysis

In this section of your project you will conduct a value analysis of your project, i$.$e$.,$ determine whether it is a value creating course of action for your hospitality company. This will involve using the material that you have presented in your preliminary analysis as well as a detailed assessment of the risk of your project and the cash flows that your project generates. With this information, you will apply the valuation techniques that we have discussed in class to determine whether or not your project will create value for your hospitality firm. In addition to resubmitting the corrected first part