Questions: In answering the questions below, please state any assumptions you are making or\ any conditions that are required.\ 1. What is ELIs investment strategy, and do you think that the acquisition of the Hotel\ Perennial fits with that strategy? Why, or why not? (10 points)\ 2. If you were advising Dan Jameson on his acquisition of the Hotel Perennial, what would you\ recommend he bid for the hotel? (Please recommend a single valuation amount, not a\ range.) You may use the assumptions in Question 3 below to aid you in your\ recommendation. (20 points)\ 3. Calculate the projected unlevered IRR, unlevered cash flow multiple, levered IRR, and\ levered cash flow multiple for the investment, assuming Jameson purchases the hotel at\ your recommended valuation from Question 2 above. Use the pro forma underwriting and\ the following assumptions: (40 points)\ Closing (date that Jameson funds the initial investment capital) occurs on December\ 31, 2010 (ignore the timing of the $1 million deposit and assume that all purchase\ price proceeds, including the deposit, are funded at closing).\ In addition to the purchase price, Jameson must pay off the mechanics liensthe\ payments owed to contractors for construction services that were never paid for by\ the previous owners. These mechanics liens total $3.85 million. However, ELIs\ general counsel, Mike Lotito, has advised Jameson that he thinks the claims can be\ bought out for 50 percent of the nominal amount (i.e., for $1.925 million). This\ amount will also be payable on the closing date. Note: The discounted buyout is not\ guaranteed, which Jameson would take into account when negotiating a purchase\ price with United.