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You own a 20-room 2-star hotel with 5 years remaining on the lease. Estimate costs, payments made by guests, and the annual discount rate. (Note:
You own a 20-room 2-star hotel with 5 years remaining on the lease. Estimate costs, payments made by guests, and the annual discount rate. (Note: Do not be too specific on individual costs and benefits. General categories will do.) Make sure to think about the cash flows being significantly lower in Year 1 (and maybe beyond) due to COVID-19. Calculate the Net Present Value of the hotel for the remainder of the lease.
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