Numerical 1 - Hubbart Formula
ABC Hotel, a proposed 30-room hotel with a fully equipped restaurant,
will be costing Rs. 750,000/- to construct. An estimated additional Rs.
50,000/- will be invested in the business as working capital. Of the total
Rs. 800,000/- investment, Rs. 400,000/- are to be secured from the
Indian Bank at the rate of 10% interest and cash Rs. 400,000/- provided
by the owners. The projected occupancy rate is 80% for the year. The
owners desire a 15% annual return on their investment after the hotel
pays income taxes of 25%. The estimated undistributed expenses, not
including income taxes and interest expense total Rs. 480,000/-. The
estimated direct operating expenses of the room department are Rs. 7/-
for each room sold. Consider a year to have 365 days.
Calculate Average Room Rate (ARR).
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in the traingle ABC , DE is parallel to AD if AD=2 BD=4 and AE=3.5 find EC
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