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Ashanti Club Houses and Lancaster and Holiday Inn facilities, have indicated that the operating expenses of managing such a resort will grow at an

Ashanti Club Houses and Lancaster and Holiday Inn facilities, have indicated that the operating expenses of

Ashanti Club Houses and Lancaster and Holiday Inn facilities, have indicated that the operating expenses of managing such a resort will grow at an average rate of 4% per annum for the first four years, and thereafter, grow at the rate of 10% for years five (5) and six (6). Based on the information provided above, you are required to prepare the cost estimates from year 1 to year 6 to support the proposal to be incorporated in the management contract. Use the framework below to simplify your work. Year Year 2 Revenue Receipts Operating Expenses Staff cost Base Data 85,500 Consumable 15,000 GHe000 GH'000 GH'000 GH'000 GHe 000 GH000 GH'000 1,500,000 stores. Food and 35,000 drinks Building 25,000 repairs Vehicle 15,200 repairs Fuel lubricants Office equipment repairs Generating 8,000 set repairs & 12,000 2,500 Year 3 Year 4 Year 5 Cleaning & 4,000 sanitation Year 6 (20 Marks)

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