please show all your work

Question 2 Problem 12 proposed Harris Place (a fifty-room, rooms-only lodging facility) is to be built in mid- hgan. Jeremy Harris, the owner, is concerned about the average daily room rate (ADR), construction costs, borrowing costs, and their impact on profits. He provides you with the following information: 1. Proposed costs of the lodging facility: Land $400,000 Building $2,000,000 Equipment $1,000,000 2. Financing Equity (desired return on investment) (ROI - 15 percent) $1,000,000 Debt (8 percent annual interest rate) $2,400,000 3. Income tax rate: 40 percent 4. Property taxes: $120,000 per year 5. Fire insurance: $30,000 (annual premium) 6. Depreciation: Building: 40-year life, straight-line method, $0 salvage value Equipment: 10-year life, straight-line method, $0 salvage value 7. Undistributed operating expenses: $300,000 annually and 5 percent of total room revenue 8. Management fee: 5 percent of rooms revenue 9. The telephone department is expected to just break even. 10. Rooms department expenses equal $30,000 annually plus 15 percent of room sales. 11. Expected paid occupancy is 70 percent. Please complete the following table (you can show your work in order to receive para credits) Net income Pretax income Interest expense EBIT Fixed charges: Property tax Insurance Depreciation building Depreciation equipment Gross Operating Profit Undistributed operating expenses Rooms dept. income L Rooms costs TotalS $ 120,000 $ 30,000 $ 50,000 S 100,000 S S S S 25% Variable rooms costs Rooms sales Available rooms