Question: please show how to do 3 IN EXCEL ithe hotef le truieal vilue will be 3200 nillien 3. The recently opened Grand Hyatt Wailea Resort
please show how to do 3 IN EXCEL ithe hotef le truieal vilue will be 3200 nillien 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 $80 a room if unoccupied (much of the labor cost of running a hotel is fixed). At an average room rate of 5500 a night, a matginal tax rate of 40%, and a cost of capital of 11%, what year-round occupancy rate do the Japanese investors who financed the Grand Hyatt Wailea require to break even in economicterms on their investment over its estimated 40 -year lifc? What is the likelihood that this investment will have a positive NPV? Assume that the $450. 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 pot depreciable) and that the present value of the hotel's terminal value will be 5200 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 fite is 10 years Ignore taxes and depreciation. 5. American Fruit Co i considering constructing a new riast to process frozen fruif jusee One plant would be capital intensive, the other much more labor intensive. Althouph iste final decision would hinpe on the telative cost of capital versus labor in the northern please show how to do 3 IN EXCEL ithe hotef le truieal vilue will be 3200 nillien 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 $80 a room if unoccupied (much of the labor cost of running a hotel is fixed). At an average room rate of 5500 a night, a matginal tax rate of 40%, and a cost of capital of 11%, what year-round occupancy rate do the Japanese investors who financed the Grand Hyatt Wailea require to break even in economicterms on their investment over its estimated 40 -year lifc? What is the likelihood that this investment will have a positive NPV? Assume that the $450. 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 pot depreciable) and that the present value of the hotel's terminal value will be 5200 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 fite is 10 years Ignore taxes and depreciation. 5. American Fruit Co i considering constructing a new riast to process frozen fruif jusee One plant would be capital intensive, the other much more labor intensive. Althouph iste final decision would hinpe on the telative cost of capital versus labor in the northern
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