Proposal 1 (Hotel Rooms + Restaurant) Under proposal 1, Avari Group plans to use the property as a hotel and a restaurant. It is planned that 70% of the property will be used for the purpose of hotel. The remaining 30% of the property will serve the purpose of a restaurant. The restaurant will be open to hotel guests as well as the general- public for dine-in. Proposal 2 (Hotel Rooms + Conference / Meeting Rooms) This proposal entails using 80% of the property for the purpose of hotel while the remaining 20% of the property will be used for providing conferences/meetings rooms services to corporate clients. This proposal will have two customer bases: Tourist coming in to spend the night and corporate clients arranging their events in the hotel. Academic Year 2021/22 Page 2 of 8 Proposal 3 (Hotel Rooms + Wedding Hall) This proposal entails using 60% of the property for the purpose of a hotel. The remaining property will be converted into large spacious halls which will serve the purpose of wedding halls. Being a completely new line of business, the board of directors have limited knowledge about the specifics of the hospitality industry. You work as the Budget Analyst (Manager) for the company and have been approached by one of the directors to prepare a report highlighting the feasibility of all the above- mentioned proposals. Requirements: The directors have asked you to draft a report to be addressed to the company's board of directors on the proposal and prospects of Avari Group that will set out the following: a) Discuss the three proposals chosen for expansion and the implications on the company performance in the context of the latest event(s) affecting the economy and/or industry and/or the company: b) Prepare an operating budget for the next 12 months for all the three options that relate to the company's expected activities and objectives for 2022: (Clearly highlight the assumptions and information about the figures being used in the preparation of the budgets) c) A critical discussion evaluating the process of budgeting as a tool for decision making, planning and control for Avari Group and the final recommendation with regards to which proposal should be selected.