Cover Part 1. Problem Part 1 Response Sheet Part 2. Problem Part 2 Response Sheet PART L. OPERATIONS BUDGET www | was at the girl www is it with watery than the find LE SUR IR Tolleta 2009-2011 AD SETS TRIM 1. Recue Badetis The finding the Tom Analyvale tea T. The Air They 20 SIA PAN 2. Express desting the wading and power . T Income Statement December 31, 2021 Tanford Hotel Budgeted Income Statement For the Years 2022-2026 2021 Actual 2022 2021 2024 2025 2026 Sales Revenue Room Fal Revenue Other Revente Total Sales Cost of Sales Gross Profil Operating Expenses Salaries and was Employweltene Direct Opening Marketing Utility Service Repuid Maine Administrative and Gewal Total Operating Express Property taxes Property Depec Operating the Taus Net Income PART 2. CAPITAL BUDGET Sarah Tanford is contemplating a technology investment project in Tanford Hotel that will include the acquisition of a brand new reservation system that will be bundled with a new property management system (PMS) and an upgrade of point-of-sale system (POS) wied in the F&B outlets (both hardware and software). The new reservation system is expected to extend the sales channels. The economie life of this project is estimated to be five years and no salvage value is expected from the disposition of the assets at the end of their economic life. The IT department has currently received an offer from a reputable IT vendor to the hotel industry. The cost break- down of this technology investment is provided in Table 1 Table 1. Investment Information One Time Ces Initial Investme 720,000 Table 2. Depreciation Consideration Salvage value Life for tax purpose 50.00 years The management team of Tanford Hotel evaluates the leasibility of this technology project. They predict that room sales revenue can be increased by each year because of the ability to reach out to www customers with the new serion system The estimated expenses for the next 5 years would be the following Table 3. Project Expenses 201 2021 20 preci 14RRIT 144.000 Training and technical suppon 16.000 36.000 Maintenance and updates 36.000 36,000 36,0001 Tanford Hotel use accept reject criteria for the investment decision as below 2021 TO 40,000 MO 16.000 7440 M6,000 36,000 Table 4. Accept/Reject Criteria Paybackyard IRR16 NPV 0 PI Requirements: 1. Using budgeted income statements in Part 1, determine the annual net income. Note: You have to use incremental for the project revenue. Tanford Hotels tax rate is 21% Net Income Revenue incrementalnestes 2. Using the information provided, determine the annual net cash flows from the proposed investment. 3. Determine the NPV, IRR. Pl and pay back period. Note: Discount rate is 12% 4. Make a decision based on the analysis Task 1. Estimate Incremental Revenue, Expenses, and Annual Incomes 2022 2021 2024 2015 2026 Revenue Forecast Incremental revenue Project expenses Deprecation Training and technical suppon Maintenance and updates Pretax income Taxes (21%) Net Income Task 2. Determine the Annual Cash flow. 2022 2011 2024 2035 2026 Net Income Add Depreciation Total Task 3. Determine Payback period. NPV IRR. Pland Payback period Decision 1 2 3 + NPV IRR PI Payback Task 4. Based on the analysis, make a decision on the investment. Cover Part 1. Problem Part 1 Response Sheet Part 2. Problem Part 2 Response Sheet PART L. OPERATIONS BUDGET www | was at the girl www is it with watery than the find LE SUR IR Tolleta 2009-2011 AD SETS TRIM 1. Recue Badetis The finding the Tom Analyvale tea T. The Air They 20 SIA PAN 2. Express desting the wading and power . T Income Statement December 31, 2021 Tanford Hotel Budgeted Income Statement For the Years 2022-2026 2021 Actual 2022 2021 2024 2025 2026 Sales Revenue Room Fal Revenue Other Revente Total Sales Cost of Sales Gross Profil Operating Expenses Salaries and was Employweltene Direct Opening Marketing Utility Service Repuid Maine Administrative and Gewal Total Operating Express Property taxes Property Depec Operating the Taus Net Income PART 2. CAPITAL BUDGET Sarah Tanford is contemplating a technology investment project in Tanford Hotel that will include the acquisition of a brand new reservation system that will be bundled with a new property management system (PMS) and an upgrade of point-of-sale system (POS) wied in the F&B outlets (both hardware and software). The new reservation system is expected to extend the sales channels. The economie life of this project is estimated to be five years and no salvage value is expected from the disposition of the assets at the end of their economic life. The IT department has currently received an offer from a reputable IT vendor to the hotel industry. The cost break- down of this technology investment is provided in Table 1 Table 1. Investment Information One Time Ces Initial Investme 720,000 Table 2. Depreciation Consideration Salvage value Life for tax purpose 50.00 years The management team of Tanford Hotel evaluates the leasibility of this technology project. They predict that room sales revenue can be increased by each year because of the ability to reach out to www customers with the new serion system The estimated expenses for the next 5 years would be the following Table 3. Project Expenses 201 2021 20 preci 14RRIT 144.000 Training and technical suppon 16.000 36.000 Maintenance and updates 36.000 36,000 36,0001 Tanford Hotel use accept reject criteria for the investment decision as below 2021 TO 40,000 MO 16.000 7440 M6,000 36,000 Table 4. Accept/Reject Criteria Paybackyard IRR16 NPV 0 PI Requirements: 1. Using budgeted income statements in Part 1, determine the annual net income. Note: You have to use incremental for the project revenue. Tanford Hotels tax rate is 21% Net Income Revenue incrementalnestes 2. Using the information provided, determine the annual net cash flows from the proposed investment. 3. Determine the NPV, IRR. Pl and pay back period. Note: Discount rate is 12% 4. Make a decision based on the analysis Task 1. Estimate Incremental Revenue, Expenses, and Annual Incomes 2022 2021 2024 2015 2026 Revenue Forecast Incremental revenue Project expenses Deprecation Training and technical suppon Maintenance and updates Pretax income Taxes (21%) Net Income Task 2. Determine the Annual Cash flow. 2022 2011 2024 2035 2026 Net Income Add Depreciation Total Task 3. Determine Payback period. NPV IRR. Pland Payback period Decision 1 2 3 + NPV IRR PI Payback Task 4. Based on the analysis, make a decision on the investment