The Hotel Conneaut is considering $3$ the following capital budgeting projects:

A new computer and software system for $$10,000$ with a $5$ year life and an estimated return of $16\%$

The construction of a new deck and seating area for $$8,000$ also with a $5$ year life andan estimated return of $12\%$

The purchase of a more effieicent self contained fryer system for $$5,000$ with a life of $4$ years and an estimated return of $10\%$

The Hotel Conneaut has internal funding for project one $($computer$/$software$),$ but two other projects would require new capital financing.

Provide the summary of the background and the decision issue for this problem.

Discuss alternative options faced by the hotel.

Evaluate each capital budgeting project. Should the hotel invest in it$?$Hint: use WACC and marginal WACC from the previous tabs for analysis

Make a recommendation for the hotel. Which project$/$combination of projects it should undertake?