A developer is proposing to build a 150-room hotel in Germantown at a cost of...
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Accounting
A developer is proposing to build a 150-room hotel in Germantown at a cost of $30 million. Operating and maintenance costs are $800,000 per year and furnishings in the hotel will have to be replaced every 5 years at a cost of $1,500,000. The developer plans to sell the hotel after 15 years for 20% of the initial cost. The annual revenue will be $7,500,000 at 100% occupancy. What occupancy rate must the developer achieve (i.e., what percentage of the 150 rooms must be filled every night on average) in order to break even at an MARR of 12% per year. You must draw a correct cash flow diagram to get full credit for this problem.
please I need your help ASAP ,,, thanksss
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