Questions

1. If an equipment investment cost $15,047 with 6-year useful life and provided additional annual sales of $4,500 expenses (excluding depreciation) of 55%, and the company is in a 20% tax bracket. What is the payback period in years? Straight line depreciation is used. Round your answer to the nearest 2 decimal places.

2.

If occupancy is less than 25%, quote price 60% of normal

If occupancy is less than 50%, quote price 80% of normal

If occupancy is more than 65%, quote price 84% of normal

a. The hotel has a rack rate of $150 and current occupancy is 98%. if someone called for a late booking what price would you quote them (in dollars)?

b. The quote listed above were taken directly from one of the teams involved in the HOTS simulation. Assuming it is July 1 in the simulation. Would this be a booking policy would use? Explain