Please explain and show work, thanks

2. (10 pts) Owners of a motel chain are considering a new investment. The cost of the 125-unit motel (excluding furnishings) is $10 million and the furnishings, which cost $2 million must be replaced every five years (with no salvage value). The annual O&M costs are $200,000 per year, the average daily room rate is $110/day (increasing by 3% per year), and the buildings will be sold in 15 years for 20% of the original building cost. Ignoring taxes, if the motel operates 365 days/year, what is the required occupancy rate if the motel chain needs to make a return of 10% per year on its investment (use end-of year convention)? 2. (10 pts) Owners of a motel chain are considering a new investment. The cost of the 125-unit motel (excluding furnishings) is $10 million and the furnishings, which cost $2 million must be replaced every five years (with no salvage value). The annual O&M costs are $200,000 per year, the average daily room rate is $110/day (increasing by 3% per year), and the buildings will be sold in 15 years for 20% of the original building cost. Ignoring taxes, if the motel operates 365 days/year, what is the required occupancy rate if the motel chain needs to make a return of 10% per year on its investment (use end-of year convention)