Cash Flow Imrovement Recommendation Install Automated Parking Gates and Charge for Parking Discussion This project will install automated parking gates at the two entrances to our parking lot. The office park that surrounmds the hotel has continued to grow, and non-guests are frequently using our parking facilities. We have analyized paid parking within our competitive set, and 3 of our 5 competitive hotels currently charge for parking. We have received Franchisor approval to begin charging for parking. Relevant Data Steps: Available Rooms 350 Parking Gate System Installation Cost $65,000 1. Calcuate the parking revenue for the year Average Vehicles Per night 125 2. Calcualte the profit based on the profit margin Competitive Parking Rate $10.00 3. Subtract the cost of the project Profit Margin 95% 4. Assign a Risk Discount based on your perceived risk of achievement Increased Profit 5. Calculation the valuation improvement based on this impoved cash flow Increased Valuation