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Hotel currently generates revenue of about $400,000 annually on its existing hotel rooms and suites, and $40,000 is available upfront (during 2022) to fund this
Hotel currently generates revenue of about $400,000 annually on its existing hotel rooms and suites, and $40,000 is available upfront (during 2022) to fund this project.
Cost-benefit analysis. Using the project description and your own assumptions and estimates where necessary, create a 3-year cost-benefit analysis of the project. You will have to make several assumptions and estimates that will be refined later on in the semester. Welcome to an analyst's work - using several very rough estimates and ideas early on that are most likely to change later on as you get more details about the project. Use your best judgment. You will be graded on setting up the cost-benefit analysis correctly and thinking about benefits and costs - you will not be graded on dollar values, other than consideration of budgets for development costs as listed in the case description. Use Figure 1-12 (p. 24 in 6th edition, p. 25 in 7th edition) as a template. Consider the types 0 benefits and costs listed in Figure 1-11 of the textbook (p. 23 in 6th edition, p. 24 in 7th edition), as well as any others you might think of. Calculate ROIStep by Step Solution
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