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home / study / business / finance / finance questions andanswers / margaritaville hotel properties is opening a new beachresort in tybee island, ga at a cost ... Question: MargaritavilleHotel Properties is opening a new beach resort in Tybee Island, GAat a cost of $2... Margaritaville Hotel Properties is opening a newbeach resort in Tybee Island, GA at a cost of $250 Million in year0. The hotel is expected to operate for 20 years and at the end, besold for approximately $500 Million in year 20. As an investmentthe hotel expected to earn $27 Million per year (including $20Million in year 20). With a discount rate of 8% and reinvestmentrate of 8%, analyze the projects feasibility using: Payback ?Discounted Payback ? NPV ? IRR ? Profitability Index ? MIRR Itturns out, you forgot that the franchise company that licenses theMargaritaville name will require the hotel owners to renovate thehotel property in year 10. This will result in significant roomclosures and a significant capital investment. Therefore, cashflows in that year 10 are expected to be -$5 Million. Using MIRR,what did you get for a rate of return?