Luxury Hotel is considering purchasing an existing hotel in the entertainment district. The hotel will require Luxury to invest $2 million to purchase the hotel. The hotel will be straight line depreciated over 20 years. At full capacity, the hotel has 100 rooms and can rent up to 36,500 room-nights per year. Operating costs are as follows: Variable cost per room per night: $20 Fixed costs per year (excluding depreciation): $525,000 Luxury requires an annual income that represents a return of 20% on the initial investment. Required A. At full capacity, what is the price charged per room in order to make the desired income B. What are qualitative issues should be considered?