Tennyson Investments has hired Geoff Strips Management Co. to operate the hotel. The Strips Co. has negotiated

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Tennyson Investments has hired Geoff Strips Management Co. to operate the hotel. The Strips Co.

has negotiated a 10% equity kicker on the sale of the property if the hotel meets or exceeds projected cash flows. If the property is sold in Year 5, what dollar amount would Geoff Strips Management receive? Utilize the capitalization rate method of valuation based on a 10% cap rate.

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Hospitality Financial Management

ISBN: 9780471692164

1st Edition

Authors: Agnes L DeFranco, Thomas W Lattin

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