0

room revenue
reduction in net room revenue*

less:

rental income
depreciation
R&M
reduction in room revenue

1
2
3
4
13200000 13464000 14137000 14844000
1650000 1683000 1767125 1855500

2040000
192500
10000
1650000

2040000
192500
10000
1683000

2142000
192500
10000
1767125

2142000
192500
10000
1855500

less:

Additional operating income

Taxes

187500
56250

154500
46350

172375
51712.5

84000
25200

Add:
less:

NOPAT
Depreciation
upfront investment

131250
192500

108150 120662.5
192500
192500

58800
192500

-770000

operating cash flows

-770000

323750

300650 313162.5

251300

discounted operating cashflows

-770000 292325.1 245117.2 230535.9 167038.9

*It is assumed that the revenue wld reduce to half on account of lesser no of families & tourists which account for
** EA or Equivalent annuity method finds out that level of annual payment over life of investment that yields a pr

Payback Period
discounted PB
ARR
NPV
IRR
PI
EA**

2.46 years
3.01 years
767978.1 2021.881 0.012104
39
297216
770000
165016.991
21%
1.21430778
$52,905.69

& tourists which account for 25% of revenue.

f investment that yields a present value equal to NPV of entire cash flows.

0
room revenue
reduction in net room revenue

4672000
1168000
1027840
283333
10000
1650000

4905600
1226400
1079232
283333
10000
1683000

5150880
1287720
1133194
283333
10000
1767125

less:

Additional operating income

Taxes

532827
159848

623635
187090

669508
200852

Add:
less:
less:

NOPAT
Depreciation
Capital Expen
Upfront invest

372979
283333
283333

436544
283333
283333

468656
283333
283333

-1700000

operating cash flows

-1700000

372979

436544

468656

discounted operating cashflows

-1700000

336775

355911

345003

less:

rental income
Food & Beverage cost
other operating costs
depreciation
R&M
reduction in room revenue

1
2
3
13200000 13464000 14137000
1650000 1683000 1767125

4
5
6
14844000 15140000 15443000
1855500 1892500 1930375

5408424
1352106
1189853
283333
10000
1855500

5678845
1419711
1249346
283333
10000
1892500

5962787
1490697
1311813
283333
10000
1930375

717631
215289

823955
247186

936569
280971

502342
283333
283333

576768
283333
283333

655598
283333
283333

502342

576768

655598

333906

346165

355284

Payback Period
discounted PB
ARR
NPV
IRR
PI
EA

3.84 yrs
4.95 yrs

1278179
1371595
30 502147.9

373043
17%
1.22
$87,545

421821 0.83971
328405 0.948696
1700000