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The owners of a discount motel chain are considering building a new motel. Optimistic, pessimistic, and most likely estimates of several key parameters have been obtained from the local builders and the chamber of commerce. These estimates are shown in th table below. The life of the motel is estimated to be 15 years, and MARR is 20%. Parameter Pessimistic Most Likely Optimistic Initial Cost Annual Operating Annual Revenue $10,600,000 $8,575,000 $5,000,000 $395,000 $200,000 $135.000 $1.000.000 $2.300,000 $3,600,000

The owners of a discount motel chain are considering building a new motel. Optimistic, pessimistic, and most likely estimates of several key parameters have been obtained from the local builders and the chamber of commerce. These estimates are shown in th table below. The life of the motel is estimated to be 15 years, and MARR is 20%. Parameter Pessimistic Most Likely Optimistic Initial Cost Annual Operating Annual Revenue $10,600,000 $8,575,000 $5,000,000 $395,000 $200,000 $135.000 $1.000.000 $2.300,000 $3,600,000

Elementary Geometry For College Students, 7e
Elementary Geometry For College Students, 7e
7th Edition
ISBN:9781337614085
Author:Alexander, Daniel C.; Koeberlein, Geralyn M.
Publisher:Alexander, Daniel C.; Koeberlein, Geralyn M.
Chapter8: Areas Of Polygons And Circles
Section8.4: Cicumference And Area Of A Cicle
Problem 46E: A tabletop is semicircular when its three congruent drop-leaves are used. By how much has the tables...
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Part a Based only on the pessimistic estimates, is the new motel economically attractive? Please enter the PW used to reach your decision: $ Carry all interim calculations to 5 decimal places and then round your final answer to the nearest dollar. The tolerance is ±100.
Transcribed Image Text:Part a Based only on the pessimistic estimates, is the new motel economically attractive? Please enter the PW used to reach your decision: $ Carry all interim calculations to 5 decimal places and then round your final answer to the nearest dollar. The tolerance is ±100.
The owners of a discount motel chain are considering building a new motel. Optimistic, pessimistic, and most likely estimates of several key parameters have been obtained from the local builders and the chamber of commerce. These estimates are shown in th table below. The life of the motel is estimated to be 15 years, and MARR is 20%. Parameter Pessimistic Most Likely Optimistic Initial Cost Annual Operating Annual Revenue $10,600,000 $8,575,000 $5,000,000 $395,000 $200.000 $135.000 $1,000,000 $2.300,000 $3,600,000
Transcribed Image Text:The owners of a discount motel chain are considering building a new motel. Optimistic, pessimistic, and most likely estimates of several key parameters have been obtained from the local builders and the chamber of commerce. These estimates are shown in th table below. The life of the motel is estimated to be 15 years, and MARR is 20%. Parameter Pessimistic Most Likely Optimistic Initial Cost Annual Operating Annual Revenue $10,600,000 $8,575,000 $5,000,000 $395,000 $200.000 $135.000 $1,000,000 $2.300,000 $3,600,000
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