The Spanish Court Hotel in Bentonville, Arkansas is in the 21% tax bracket with a 15 percent required rate of return (or cost of capital) and is considering a new project. This project involves the acquisition of a portfolio of 4 boutique hotels at a cost of $62,016,176.

Use the data below to calculate the projects:

• Payback
• NPV
• PI
• IRR

Year 1 Year 2 Year 3 Year 4 Year 5v

Gross Profit $23,700,000 $30,900,000 $38,100,000 $23,700,000 $16,900,000

Depreciation 4,240,000 4,240,000 4,240,000 4,240,000 4,240,000

EBT 19,460,000 26,660,000 33,860,000 19,460,000 12,660,000

Less: Taxes 4,086,600 5,598,600 7,110,600 4,086,600 2,658,600

Net Income 15,373,400 21,061,400 26,749,400 15,373,400 10,001,400

OCF 19,613,400 25,301,400 27,169,400 19,613,400 14,241,400