HRMA 4343 Project 2

This project was developed for HRMA 4343: Financial Administration for the Hospitality Industry. Using EXCEL, set up all given parameters for calculations. Label all variables properly. Then: 1. Calculate the cost of debt, cost of equity, and the weighted cost of capital (15%), 2. Estimate the net cash flows for this project for its entire life (all years) using both the NCF formula (10%) and the regular income statement format (35%), 3. Calculate Payback (5%), Net Present Value (10%), and Internal Rate of Return (10%), 4. Determine whether HMT should make this investment under each capital budgeting criterion. Present all calculations and explain the rationale in full sentences and paragraphs such as the definitions of the methods used and how each decision is derived. Grammar and content are both important (15%). All Rights Reserved.