The StayaNight discount motel chain is considering a proposal to build a new motel that would have 150 rooms. Revenues: Once the motel is operational, it will generate revenue of $100 per night per room that is occupied. This price is expected to hold constant over the lifespan of the project. Operational Costs: Daily operational including labour and materials; costs are $5,000 + $20 per occupied room in year 1, and both will increase 3% annually. Accounts Receivable, Accounts Payable and Inventory can be ignored. Administrative Expense: Administrative expense is estimated at $350,000 annually with no annual change. Annual Replacement Expense (furniture etc.) is $50,000 in year one and will grow10% per year after that. Marketing is planned at $60,000 annually. Investment: The motel will cost $1,000,000 to build. Simplify depreciation to be calculated as straight line over 30 years. It will be financed with a 30 year loan at 8% interest compounded annually with annual payments. It will be sold at the end of year 15 for $300,000, at which time the remaining balance on the load will be paid. The land lease cost is $100,000 annually. The corporate minimally attractive rate of return is 15%. Tax rate is 35%.
Prepare an income statement and cash flow statement.
Gradingfor this assignment will be based on answer quality, logic / organization of the paper, and language and writing skills, using the following rubric.
Points: 190 |
Assignment 4: Internet Technology, Marketing, and Security |
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Criteria |
Unacceptable Below 70% F |
Fair 70-79% C |
Proficient 80-89% B |
Exemplary 90-100% A |
1. Evaluate the reasons Social Media Marketing has become exceedingly popular among businesses of all sizes. Weight: 15% |
Did not submit or incompletely evaluated the reasons Social Media Marketing has become exceedingly popular among businesses of all sizes. |
Partially evaluated the reasons Social Media Marketing has become exceedingly popular among businesses of all sizes. |
Satisfactorily evaluated the reasons Social Media Marketing has become exceedingly popular among businesses of all sizes. |
Thoroughly evaluated the reasons Social Media Marketing has become exceedingly popular among businesses of all sizes. |
2. Analyze the advantages of Social Media Marketing for business entrepreneurs. Weight: 15% |
Did not submit or incompletely analyzed the advantages of Social Media Marketing for business entrepreneurs. |
Partially analyzed the advantages of Social Media Marketing for business entrepreneurs. |
Satisfactorily analyzed the advantages of Social Media Marketing for business entrepreneurs. |
Thoroughly analyzed the advantages of Social Media Marketing for business entrepreneurs. |
3. Assess how Social Media Marketing is helping Pepsi gain more customer insight than it would have otherwise. Weight: 20% |
Did not submit or incompletely assessed how Social Media Marketing is helping Pepsi gain more customer insight than it would have otherwise. |
Partially assessedhow Social Media Marketing is helping Pepsi gain more customer insight than it would have otherwise. |
Satisfactorily assessed how Social Media Marketing is helping Pepsi gain more customer insight than it would have otherwise. |
Thoroughly assessed how Social Media Marketing is helping Pepsi gain more customer insight than it would have otherwise. |
4. Research two (2) other businesses that have used Social Media Marketing to their advantage. Discuss how each of these businesses has utilized Social Media Marketing and provide examples with your discussion. Weight: 20% |
Did not submit or incompletelyresearched two (2) other businesses that have used Social Media Marketing to their advantage; did not submit or incompletely discussed how each of these businesses has utilized Social Media Marketing and did not submit or incompletely provided examples with your discussion. |
Partiallyresearched two (2) other businesses that have used Social Media Marketing to their advantage; partially discussed how each of these businesses has utilized Social Media Marketing and partially provided examples with your discussion. |
Satisfactorilyresearched two (2) other businesses that have used Social Media Marketing to their advantage; satisfactorily discussed how each of these businesses has utilized Social Media Marketing and satisfactorily provided examples with your discussion. |
Thoroughlyresearched two (2) other businesses that have used Social Media Marketing to their advantage; thoroughly discussed how each of these businesses has utilized Social Media Marketing and thoroughly provided examples with your discussion. |
5. Speculate what impact Social Media will have business in the next decade and identify what skills you need to improve to take advantage of the changes. Weight: 15% |
Did not submit or incompletely speculated what impact Social Media will have on business over the next decade and identify what skills you need to improve to take advantage of the changes. |
Partially speculated what impact Social Media will have on business over the next decade and identify what skills you need to improve to take advantage of the changes. |
Satisfactorily speculated what impact Social Media will have on business over the next decade and identify what skills you need to improve to take advantage of the changes. |
Thoroughly speculated what impact Social Media will have on business over the next decade and identify what skills you need to improve to take advantage of the changes. |
6. 5 references Weight: 5% |
No references provided |
Does not meet the required number of references; some or all references poor quality choices. |
Meets number of required references; all references high quality choices. |
Exceeds number of required references; all references high quality choices. |
7. Clarity, writing mechanics, and formatting requirements Weight: 10% |
More than 6 errors present |
5-6 errors present |
3-4 errors present |
0-2 errors present |