A motel has 30 rooms and expected 70% occupancy next year. Theowners investment is presently $520,000, and they expect a 12% after-tax annual return ontheir investment. The motel is in a 24% tax bracket. The motel is carrying two mortgages: thefirst mortgage in the amount of $359,000 at a 10% interest rate and the second mortgage inthe amount of $140,000 at a 14% interest rate. Current book value of the building is$632,000, and depreciation rate is 5%. Present combined book value of furniture andequipment is $117,000, and the combined depreciation rate is 20%. Indirect costs are$44,800 and direct costs are $59,300. The motel also receives an additional $12,000 a yearleasing out its restaurant.

What is the sales revenue required to cover all expenses and costs and to provide theowners with their desired return on investment?a.$272,705b. $284,705c. $296,705d.Cant determine