Subject category:
Finance, Accounting and Control
Published by:
Ivey Publishing
Version: 2001-08-17
Abstract
Spencer Hall is an executive conference centre. The director of finance must decide whether an investment of $1.2 million to renovate guest rooms at Spencer Hall will generate a positive net present value. It was hoped that renovations would result in increased occupancy and higher room rates. The director of finance must analyze the revenue projections provided by Spencer Hall management, and undertake some sensitivity analysis using different occupancy rates.
About
Abstract
Spencer Hall is an executive conference centre. The director of finance must decide whether an investment of $1.2 million to renovate guest rooms at Spencer Hall will generate a positive net present value. It was hoped that renovations would result in increased occupancy and higher room rates. The director of finance must analyze the revenue projections provided by Spencer Hall management, and undertake some sensitivity analysis using different occupancy rates.