Answer:
Present Value of Investment Opportunity = $95,096
Explanation:
Net cash inflow = Cash inflow - cash outflow
Given that net cash inflow = $30,000 per month for 4 years
Rate of return = 10%
Present Value =
= $27,272.72 +$24,793.38 + $22,539.44 + $20,490.40
= $95,096 (rounded off to nearest dollar)
Present Value of Investment Opportunity = $95,096
Answer and explanation:
Budgeted rooms to be sold next year: 80 × 75% × 365 = 21,900
a. Budgeted Departmental Contributory Income Statement
$ $
Rooms Department
Sales Revenue: [21,900 * $68.00] $1,489,200
Expenses
Fixed wages expense $186,000
Housekeeping expenses [21,900 * 0.5 *$9.00] 98,550
Subtotal $284,550
Fringe benefits: [18% *$284,550] 51,219
Other costs: [21,900 * $2.75] 60,225 (395,994)
Rooms Contributory income $1,093,206
Overnight guests: 80 rooms * 75% = 60 rooms occupied
40% * 60 = 24 rooms double occupied
84 overnight guests
Average breakfast guests: 80% *84 = 67.2 Guests
Snack bar sales revenue $
Breakfast: [67.2 * $6.50 *365] $159,432
Lunch: [50 * 1.5 * $8.95 * 365] 245,006
Dinner: [50 * 2.0 *$10.95 * 365] 399,675
Total Sales Revenue $804,113
Expenses [78% * $804,113] (627,208)
Snack Bar Contributory Income $176,905
Consolidated Motel Departmental Income Statement
Rooms Contributory Income $1,093,206
Snack Bar Contributory Income 176,905
Total Contributory Income $1,270,111
Less: Indirect, Undistributed Costs (580,800)
Budgeted Operating Income
check the attached file fro well formatted answers
