I can send you the excel worksheet through email if you want.

i dont know why the images quality keep going down, i think chegg reduce the quality because they look perfecly clear on my iphone 13. Can I have your email so i can send you the Excel worksheet and you can complete all the work.

3 PART 2. CAPITAL BUDGET 4 5 6 7 8 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) used in the F&B outlets (both hardware and software). The new reservation system is expected to extend the sales channels. The economic 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 9 Table 1. Investment Information One Time Cost Initial Investment Cost $ 720,000 XUNNOSSO Table 2. Depreciation Consideration Salvage value Life for tax purposes $0.00 years 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 2025 The management team of Tanford Hotel evaluates the ficesibility of this technology project. They protict that room sales revenue can be increased by 3% cach year bermuse of the ability to reach out to new customers with the new reservation system, The estimated expenses for the next 5 years would be the following: Table 3. Project Expenses 2021 2022 2023 2024 Depreciation $ 144,000$ 144,000 $ 144,000 $ 144,000 $ 144,000 Training and technical support 36,000 36,000 36,000 36,000 36,000 Maintenance and updates 36,000 36,000 36.000 36,000 36,000 Tanford Hotel uses accept/reject criteria for the investment decision as below: Table 4. Accept/Reject Criteria Payback - 3 years IRR - 16% NPV > PI >1 Requirements: 1. Using budgeted income statements in Part 1, determine the annual net income. Note: You have to use "revenue incremental for the project revenue. Tanford Hotel's tax rate is 21% Net Income - Revenue incremental - expenses taxes 2. Using the information provided, determine the annual net cash flows from the proposed investment 3. Determine the NPV, IRR, 11 and payback period. Note: Discount rate is 12% 4. Make a decision based on the analysis 46 47 48 49 2024 2025 2026 Task 1. Estimate Incremental Revenue, Expenses, and Annual Incomes 2022 Revenue forecast Incremental revenue Project expenses Depreciation Training and technical support Maintenance and updates Pretax Income Taxes (21%) Net Income Task 2. Determine the Annual Cash flow. 2022 2023 2024 2025 2026 Net Income Add: Depreciation Total Task 3. Determine Payback period. NPV, IRR. PL and Payback period 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 Decision NPV- IRR- PL Payback Task 4. Based on the analysis, make a decision on the investment. PART I. OPERATIONS BUDGET Sarah Tanford, the owner the Tanford Hotel, is in the process of preparing a five-years operations budget for Tanford Hotel Tanford Hotel is a 150-room city hotel. The hotel has three revenue sources ) room department, (2) FRB department, and (3) the gift shops and ancillary services Sarah and her management team have come up with the following revenue and expense predictions for the next three years. Using this information and the most recent income statement of the company from December 2021. help Ms. Tanford and her management team prepare the five years operations budget for Tanford Hotel Table 2: 2021 Income Statement Income State Desember 31, 2021 Vertical Analysis 2021. Actual Saks Revenue Room Reverse RSTI.797 70.42% FARR 3,428,719 28.17% Other Reve 1714 141% Total Sales Revenue 12.171,952 100.00% Cost of Sales 3.908,146 Gross Profile R.763,805 - The board of directors has established the major financial goal of generating a minimum net income of 15% of sales Room Revenue for the past three years are shown in Table - The most recent income statement of the hotel is shown in Table 2. -Two new competitor botels are planned to be opened in the same location. Operating Expenses Salaries and Wages Employee Benefits Direct Operating per Marketing Utility Services Repairs and Maintenance Administrative and General Total Operating Express 1.923,165 328,64) 438,190 243,439 $23.94 754.461 $11.222 4.722,917 40.7% 7.0% 93% 5.2% 11.IN 16.0% 10.8% 100.0% Year Rooms Sold Occupancy ADR Rooms Revenue Table 1: Room Revenue in 2019-2021 2019 2020 43.169 82.5% 83.0% $175.37 $181.33 $7,921,331 $8,240,299 2021 45,716 83.59 $187.50 3.571.797 Property Property In Intel Depreciation 170,407 100.541 486,878 852,037 Operating Income 2.422,218 TANG Net Income SON 10111 PART I. OPERATIONS BUDGET Sarah Tanford, the owner the Tanford Hotel, is in the process of preparing a five- years operations budget for Tanford Hotel. Tanford Hotel is a 150-room city hotel. The hotel has three revenue sources: (1) room department, (2) F&B department, and (3) the gift shops and ancillary services. Sarah and her management team have come up with the following revenue and expense predictions for the next three years. Using this information and the most recent income statement of the company from December 2021, help Ms. Tanford and her management team prepare the five-years operations budget for Tanford Hotel. The board of directors has established the major financial goal of generating a minimum net income of 15% of sales. -Room Revenue for the past three years are shown in Table 1 - The most recent income statement of the hotel is shown in Table 2. - Two new competitor hotels are planned to be opened in the same location. Year Rooms Sold Occupancy % ADR Rooms Revenue Table 1: Room Revenue in 2019-2021 2019 2020 45,169 45,443 82.5% 83.0% $175.37 $181.33 $7,921,333 $8,240,299 2021 45,716 83.5% $187.50 8,571,797 Table 2: 2021 Income Statement Income Statement December 31, 2021 Vertical Analysis 2021 Actual Sales Revenue Room Revenue F&B Revenue Other Revenue Total Sales Revenue 8,571,797 3,428,719 171,439 12,171,952 70.42% 28.17% 1.41% 100.00% Cost of Sales 3,408,146 Gross Profit 8,763,805 Operating Expenses Salaries and Wages Employee Benefits Direct Operating Expenses Marketing Utility Services Repairs and Maintenance Administrative and General Total Operating Expenses 1,923,168 328,643 438,190 243,439 523,394 754,661 511,222 4,722,717 40.7% 7.0% 9.3% 5.2% 11.1% 16.0% 10.8% 100.0% Property taxes Property Insurance Interest Depreciation 170,407 109,548 486,878 852,037 Operating Income 2,422,218 Taxes Net Income 508,666 1,913,552 2 Pape PI >1 Requirements: 1. Using budgeted income statements in Part 1, determine the annual net income. Note: You have to use "revenue incremental for the project revenue. Tanford Hotel's tax rate is 21% Net Income - Revenue incremental - expenses taxes 2. Using the information provided, determine the annual net cash flows from the proposed investment 3. Determine the NPV, IRR, 11 and payback period. Note: Discount rate is 12% 4. Make a decision based on the analysis 46 47 48 49 2024 2025 2026 Task 1. Estimate Incremental Revenue, Expenses, and Annual Incomes 2022 Revenue forecast Incremental revenue Project expenses Depreciation Training and technical support Maintenance and updates Pretax Income Taxes (21%) Net Income Task 2. Determine the Annual Cash flow. 2022 2023 2024 2025 2026 Net Income Add: Depreciation Total Task 3. Determine Payback period. NPV, IRR. PL and Payback period 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 Decision NPV- IRR- PL Payback Task 4. Based on the analysis, make a decision on the investment. PART I. OPERATIONS BUDGET Sarah Tanford, the owner the Tanford Hotel, is in the process of preparing a five-years operations budget for Tanford Hotel Tanford Hotel is a 150-room city hotel. The hotel has three revenue sources ) room department, (2) FRB department, and (3) the gift shops and ancillary services Sarah and her management team have come up with the following revenue and expense predictions for the next three years. Using this information and the most recent income statement of the company from December 2021. help Ms. Tanford and her management team prepare the five years operations budget for Tanford Hotel Table 2: 2021 Income Statement Income State Desember 31, 2021 Vertical Analysis 2021. Actual Saks Revenue Room Reverse RSTI.797 70.42% FARR 3,428,719 28.17% Other Reve 1714 141% Total Sales Revenue 12.171,952 100.00% Cost of Sales 3.908,146 Gross Profile R.763,805 - The board of directors has established the major financial goal of generating a minimum net income of 15% of sales Room Revenue for the past three years are shown in Table - The most recent income statement of the hotel is shown in Table 2. -Two new competitor botels are planned to be opened in the same location. Operating Expenses Salaries and Wages Employee Benefits Direct Operating per Marketing Utility Services Repairs and Maintenance Administrative and General Total Operating Express 1.923,165 328,64) 438,190 243,439 $23.94 754.461 $11.222 4.722,917 40.7% 7.0% 93% 5.2% 11.IN 16.0% 10.8% 100.0% Year Rooms Sold Occupancy ADR Rooms Revenue Table 1: Room Revenue in 2019-2021 2019 2020 43.169 82.5% 83.0% $175.37 $181.33 $7,921,331 $8,240,299 2021 45,716 83.59 $187.50 3.571.797 Property Property In Intel Depreciation 170,407 100.541 486,878 852,037 Operating Income 2.422,218 TANG Net Income SON 10111 PART I. OPERATIONS BUDGET Sarah Tanford, the owner the Tanford Hotel, is in the process of preparing a five- years operations budget for Tanford Hotel. Tanford Hotel is a 150-room city hotel. The hotel has three revenue sources: (1) room department, (2) F&B department, and (3) the gift shops and ancillary services. Sarah and her management team have come up with the following revenue and expense predictions for the next three years. Using this information and the most recent income statement of the company from December 2021, help Ms. Tanford and her management team prepare the five-years operations budget for Tanford Hotel. The board of directors has established the major financial goal of generating a minimum net income of 15% of sales. -Room Revenue for the past three years are shown in Table 1 - The most recent income statement of the hotel is shown in Table 2. - Two new competitor hotels are planned to be opened in the same location. Year Rooms Sold Occupancy % ADR Rooms Revenue Table 1: Room Revenue in 2019-2021 2019 2020 45,169 45,443 82.5% 83.0% $175.37 $181.33 $7,921,333 $8,240,299 2021 45,716 83.5% $187.50 8,571,797 Table 2: 2021 Income Statement Income Statement December 31, 2021 Vertical Analysis 2021 Actual Sales Revenue Room Revenue F&B Revenue Other Revenue Total Sales Revenue 8,571,797 3,428,719 171,439 12,171,952 70.42% 28.17% 1.41% 100.00% Cost of Sales 3,408,146 Gross Profit 8,763,805 Operating Expenses Salaries and Wages Employee Benefits Direct Operating Expenses Marketing Utility Services Repairs and Maintenance Administrative and General Total Operating Expenses 1,923,168 328,643 438,190 243,439 523,394 754,661 511,222 4,722,717 40.7% 7.0% 9.3% 5.2% 11.1% 16.0% 10.8% 100.0% Property taxes Property Insurance Interest Depreciation 170,407 109,548 486,878 852,037 Operating Income 2,422,218 Taxes Net Income 508,666 1,913,552 2 Pape