Hill Lodge owns a hotel chain and is considering building a new 200-unit luxury hotel. The cost of building is estimated to be $8 M (M=million). Furnishing the hotel will cost $700,000 every five years. The annual operating and maintenance cost is estimated to be $800,000. The average rental rate for a room is anticipated to be $40 per day. Hill Lodge will own the hotel for 15 years at which time the hotel will have a resale value of $900,000. The furnishing will not be replaced at the end of 15 years. Assuming the occupancy rate to be 50% for the 1st year, 60% for the 2nd year. 70% for the 3rd year, 80% for the 4th year and 90% for years 5 through Find the present worth of each of the following Cost of furnishing ($1, 322.58 K) (K = thousand) Operating and maintenance cost ($5, 448.69 K) Rental income ($15, 556.53 K) Assume 365 days per year and an interest rate of 12% per year