What is your break-even price

Assignment Help Business Economics

Reference no: EM131239831

In early 2008, you purchased and remodeled a 120-room hotel to handle the increased number of conventions coming to town. By mid-2008, it became apparent that the recession would kill the demand for conventions. Now, you must forecast that you will only be able to sell 20,000 room-nights that cost on average $50 per room per night to service. You spent $20 million on the hotel in 2008, and your cost of capital is 10%. The current going price to sell the hotel is $15 million. What is your break-even price?

Reference no: EM131239831

Questions Cloud

List the third sixth and seventh fibonacci numbers : Find a formula for the sum of the first n odd-index Fibonacci numbers (F1, F3, etc.).

What is the gaap concept of objective measurement : What is the GAAP concept of objective measurement paramount in understanding asset valuation?

Income of consumers of cell phones : Using the demand curve shifters (PYNTE), explain whether each of the following will increase or decrease demand for cell phones. Tell whether the demand curve shifts to the right or to the left. a. A decrease in the income of consumers of cell pho..

Write a paper on events aim and objective : Topic: Event's aim and objective The major purpose of this event was to raise money for donations to the cancer research organization in the UK. Describe the below given points in paper.

What is your break-even price : In early 2008, you purchased and remodeled a 120-room hotel to handle the increased number of conventions coming to town. By mid-2008, it became apparent that the recession would kill the demand for conventions. Now, you must forecast that you will o..

How do datagram services differ from virtual circuit service : What does a packet contain? What do you think the future of ISDN holds? Why? - How do datagram services differ from virtual circuit services? How does an SVC differ from a PVC?

Committees in making decisions about monetary policy : Recall the Application about the effectiveness of committees in making decisions about monetary policy to answer the following? question(s). Former Fed viceminus−chairman Alan Blinder developed an experiment to see whether individuals or groups make ..

Explain the differences between cir and mar : Compare and contrast frame relay, ATM, and Ethernet services. Which is likely to be the longer-term winner: X.25, frame relay, ATM, MPLS, or Ethernet services?

Is this an equivalence relation on the set of all words : Let us say that two words are equivalent if they are anagrams of each other. How many six-letter words are equivalent to BLEFLA? (Note that the words do not have to be sensical.) Is this an equivalence relation on the set of all words?

User Account

All Pages