Question: There are two different hotel chains that you have identified as potential investment opportunities. You are looking for a minimum required rate of return of

There are two different hotel chains that you have identified as

There are two different hotel chains that you have identified as potential investment opportunities. You are looking for a minimum required rate of return of 8 per cent. As a starting point, you have accumulated some basic information to calculate the return on investment and residual income. Hotel Aster Hotel Bella Sales $10 000 000 $6 000 000 Net operating income 200 000 300 000 Average operating assets 2 000 000 3 000 000 Required Calculate the ROI and residual income for each hotel. Explain the meaning of your calculations. (8 marks) b) What is meant by environmental costs in organisation and how environmental costs are expended in organisations? (7 marks)

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