A mini hotel is expected to last 5 years and pays property management fee $10,000 per year (a mini Hotel will pay 15% of revenue as property management fee), what is the NPV of selling one hotel for $100,000 under the following 3 different cost prices identified (assume a discount rate of 10%)?

It costs $85,000 to develop the Hotels app, administrative costs of approximately $25,000 per year, and the advertising costs per year are $35,000 for up to 5 hotels and $60,000 for more than 5 hotels.

What is the break even point in terms of the number of hotels that need to be sold and be operating each year?

(hint: there are two cost scenarios because of the shift in advertising costs so you will need to do NPV calculations under the two scenarios).

Please show workings!

This is an open question, you can make *assumption* on any ungiven information!