Financial management chapter 6 and 7

The Hopedale Inn invested in a ten-acre plot of land for future development twenty years ago. It purchased this land for $100,000 and it could be sold today for $500,000. The Hopedale Inn's average and incremental tax rates are 22 percent and 30 percent, respectively. The Inn is considering bullding a new lodging facility on this land. Required: What is the opportunity cost of this investment? The 100-room limited-service Pepper Inn has an ADR of $80 and variable costs per room sold of $15. Assume there is no other sales activity. Its monthly fixed costs total $100,000 Required 1. How many rooms must be sold to break even? 2. What day of the month does it break even if it averages a paid occupancy percentage of 60 percent? Assume all 100 rooms are available for sale each day