Answer:
The NPV of the project at 8.7 percent will be 4,802.58
Explanation:
We will calcualte the present value of the cash inflow:
<u>year 3: </u>
Inflow 11,900.00
time 3.00
rate 0.087
PV 9,265.28
<u>Year 4:</u>
Inflow 11,900.00
time 4.00
rate 0.087
PV 8,523.71
<u>Year 6:</u>
Inflow 50,500.00
time 6.00
rate 0.087
PV 30,613.58
Then, we will add them together and subtract the investment amount
NPV: 30,613.59 + 8,523.71 + 9,265.28 - 43,600 = 4,802.58
Answer:
Explanation:
The classified balance sheet comprises of the assets, liabilities, and stockholder equity. With the help of the accounting equation, the total assets are equal to the total liabilities including stockholder's equity.
The assets are further divided into current assets, fixed assets, and intangible assets. Similarly, the liabilities are also further divided but they do not have any intangible liabilities.
The preparation of the partial balance sheet is presented in the spreadsheet. Kindly find the attachment below:
Answer:
In order to maximize average daily profit, optimal number of reservations = 100 rooms.
Explanation:
As for the provided information, we have
Total number of rooms = 100
Chances of guests not arriving = 5%
Therefore, guests to arrive = 95%
Thus, bookings = 100/95% = 105.26
Rounding off we have 105 rooms,
Let us assume, all rooms are booked and no cancellation is done, in that case,
Total revenue = $150 100 = $15,000
Less: Overbooked charges = $200 5 = ($1,000)
Less: Variable Cost = $30 100 = ($3,000)
Thus total revenue will be $11,000
In case of booking of 100 rooms the net revenue in case of 5% cancellations, shall be:
Rooms booked = 100 - 5% = 95
Revenue = 95 $150 = $14,250
Less: Variable Costs = 95 $30 = ($2,850)
Thus total revenue = $11,400
Since profit in case of booking 100 rooms is more in any case, even in case of least cancellation the revenue will increase.
Thus, this is the optimal number of reservations = 100