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The Hotel Conneaut is considering 3 the following capital budgeting projects.
The Hotel Conneaut has an internal fund for project one with $10,000. However, the 2
other projects would required new capital financing.
1. A new computer and software system for $10,000 with a 5 year life and an
estimated return of 16%
2. The construction of a new deck and seating area for $8,000 also with a 5 year life and
an estimated return of 12%
3. Lastly the purchase of a more effieicent self contained fryer system for $5,000 with a
life of 4 years and an estimated return of 10%
Which projects should they undertake?
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