Hospitality Industry Managerial Accounting:

Please help me understand how to solve this question regarding franchise fees over a ten year period.

S. (5 points) Nathan Gillmore is considering two franchise opportunities for a 100-room suite property. He believes each firm offers about the same services and will sign with the firm that has the lowest franchise costs over the initial 10-ycar period Use the Franchise Fee Worksheet (MS Excel) uploaded to Canvas Module CHAPTER 2 & 3Ch 2&3 IIW HW Worksheets The franchise costs are as follows Alpha Hotel $25,000 4% of gross room sales 3% of gross room sales Omega Hotel Initial fee Royalty fee Advertising fee Reservation fee 3.5% 3% 2.5% 5300 per room of gross room sales of gross room sales of gross roorn sales $4 /room/month plus $4 per reservation Further, he expects the Alpha Hotels' reservation its room sold each year system to provide his hotel with 20% of Gillmore projects both hotels' ADR and occupancy percentages for the 10-year period to be as follows" ear 100 100 100 100 100 100 100 $49 $52 $56 S61 $66 $72 $78 585 $88 60% 65% 70% 73% 75% 75% 75% 75% 75% 75% 100 Required: Determine the total franchise cost for each franchise system and recommend Nathan Gillmore with whom he contracts to manage the hotel. Attach your formula sheet (Excel sheet Formulas Show Formulas. The sheet of your solution and formulas should be printed into one page, respectively