A 250-room hotel is planned for the southwestern United States. The total cost of $20,000,000 is distributed as follows:

Land $ 1,000,000 FF&E 2,000,000 Building 16,500,000 Pre-opening expense 500,000 The project will be financed as follows:
1. Loan from insurance company of $15,000,000, 13% interest, 30-year amor- tization, with annual payments due at the end of each year 2. $5,000,000 capital from the owner-operator Assume the building life is 40 years old, and FF&E has a 10-year life. The pre- opening expense is to be amortized over a 5-year period. All expenditures for these assets will be made before 19X1.
The forecasted revenue and expense per room for 20X1 is as follows:
Revenues:
Rooms $17,787 Food—including other income 7A59 Beverages 2,324 Telephone 767 Other operated departments 646 Rentals and other income 462 Total Revenues $29,445 Departmental Costs and Expenses:
Rooms $ 4,829 Food and beverages 8,053 Telephone 574 Other operated departments 456 Total Costs and Expenses $13,912 Total Operated Departmental Income $15,533 Undistributed Operating Expenses:
Administrative and general $ 2,842 Franchise fees 284. Marketing and guest entertainment 1,940 Property operation and maintenance 1,561 Energy costs 1,384 Total Undistributed Expenses $ 8,011 Income Before Fixed Charges Oh LS Property Taxes and Insurance:
Property taxes and other municipal charges $ 644 Insurance on buildings and contents 150 Total Property Taxes and Insurance $ 794 Income Before Other Fixed Charges $ 6,728 These figures must be adjusted for years 20X2~20X5 as follows:
1. 20X2—increase the amounts by 10%
2. 20X3—increase the amounts by 20%
3. 20X4—increase the amounts by 40%
4. 20X5—increase the amounts by 60%

Any operating losses may be carried forward until used. Assume an average tax rate of 25%.
Required:
1. Prepare a mortgage repayment schedule for the first 5 years. Round figures to the nearest dollar.
2. Prepare depreciation schedules for the first 5 years using the straight-line method for the building (assume a salvage value of $3,000,000) and the double declining balance method for the FF&E.
3. Prepare projected income statements for the proposed hotel for years 20X1-20X5.
4. Calculate the projected cash flows for years 20X1-20X5. Assume there will be no changes in current asset and liability accounts from year to year other than the cash account.