Question: please show how to do 3 IN EXCEL 3. The recently opened Grand Hyatt Wailea Resort and Spa on Maui cost $600 million, about $800,000
3. The recently opened Grand Hyatt Wailea Resort and Spa on Maui cost $600 million, about $800,000 per room, to build. Daily operating expenses average $135 a room if occupied and ous a room if unoccupied (much of the labor cost of running a hotel is fixcd). At an average room rate of $500 a night, a marginal tax rate of 40%, and a cost of capital of 11%, what year-round occupancy rate do the Japanese investors who financed the Grand Hyan Wailea require to break even in economic terms on their investment over its estimated 40 -year life? What is the likelihood that this investment will have a positive NPV? Assume that the S450 million expense of building the hotel can be written off straight line over a 30 -year period (the other $150 million is for the land which is not depreciable) and that the present value of the hotel's terminal value will be $200 million. 4. Conduct a sensitivity analysis for a project with the following characteristics. Each parameter can take on any of three different values but once a parameter value is selected, that value remains constant for the 10-year period. The discount rate is 10% and the project life is 10 years. Ignore taxes and depreciation. One plant wotht bet it considering constructing a new plant to process frozen fruit juices final decision we capital intensive, the other much more labor intensive. Although the tinal decision would hinge on the relative cos of capital versus labor in the northern 3. The recently opened Grand Hyatt Wailea Resort and Spa on Maui cost $600 million, about $800,000 per room, to build. Daily operating expenses average $135 a room if occupied and ous a room if unoccupied (much of the labor cost of running a hotel is fixcd). At an average room rate of $500 a night, a marginal tax rate of 40%, and a cost of capital of 11%, what year-round occupancy rate do the Japanese investors who financed the Grand Hyan Wailea require to break even in economic terms on their investment over its estimated 40 -year life? What is the likelihood that this investment will have a positive NPV? Assume that the S450 million expense of building the hotel can be written off straight line over a 30 -year period (the other $150 million is for the land which is not depreciable) and that the present value of the hotel's terminal value will be $200 million. 4. Conduct a sensitivity analysis for a project with the following characteristics. Each parameter can take on any of three different values but once a parameter value is selected, that value remains constant for the 10-year period. The discount rate is 10% and the project life is 10 years. Ignore taxes and depreciation. One plant wotht bet it considering constructing a new plant to process frozen fruit juices final decision we capital intensive, the other much more labor intensive. Although the tinal decision would hinge on the relative cos of capital versus labor in the northern
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