1. A construction company is considering building a GUEST HOUSE consisting of 1000 ROOMS, in Riyadh. Given the huge business activity of the city, it is assumed that the Hotel will average a 90% occupancy, annually. Using the following data, determine the minimum weekly charge applicable. The rate of return is 15%. DATA Land Investment cost is 1000,000 SAR; Building Investment cost is 2500,000 SAR; Annual Maintenance Cost is 150,00 SAR; Property taxes & Insurance is 5% of total initial investment; Study Period is 25 years, SALVAGE VALUE is the Land investment Cost. Land cost 1000000 SAR Building Cost = 2500000 SAR Total investment is 3500000 SAR Annual maintainence= 150000SAR Propert Tax = 0.05* (3500000) SAR = 175000 SAR Salvage value 1000000SAR Study period -25 years CR (0.15)= (3500000-1000000) (A/P, 0.15, 25)+ 0.15(1000000) =536749 SAR Operating + management costs Property Tax+ Maintainence (costs) =175000+150000= 325000 SAR AEC (15%) = 536749+325000 -861, 000 SAR Required minimum weekly charge = ( 861000)/ [(50*1000)(0.9)1= 19.133 SAR /week