Nikola Pamler …………..…………………………… Ulrich Sommer Executive Summary This paper assesses the different benefits and costs associated with each of the capital projects, Planet Karaoke Pub that offered to sign a four-year lease agreement and Beach Karaoke Pub that offered to sign a six-year lease. It develops in general, the relevant incremental cash flows for each option and the appropriate discount rate for discounting the incremental cash flows. Different evaluation criteria are used to
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I. Economic Benefits Leasing The first and most obvious benefit of leasing the space is the significantly lower capital expenditure at period zero. The capital expenditure for the leasing project is more than half of that of the building a business project. This means that there are less upfront payments as well as less potential debt. Additionally, the guaranteed lease payments indicate a consistent cash flow for the hotel regardless of the success of the pub venture. In comparison, depreciation
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Internet) - without the permission of The University of Hong Kong. Ref. 01/108C 1 KO WANG SU HAN CHAN PHUKET BEACH HOTEL: VALUING MUTUALLY EXCLUSIVE CAPITAL PROJECTS Mike Campbell, General Manager of Phuket Beach Hotel, paced his office and considered an offer made by Planet Karaoke Pub. Planet Karaoke Pub was expanding fast in Thailand. It was looking for a venue in Patong beach area for setting up another outlet, and was eyeing an unused space owned by the Hotel. At this point, the space
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Financial Management. EBS ML. 4th course students. Case study. Phuket Beach Hotel. Valuing Mutually Exclusive Capital Projects. Questions 1. Please asses the economic benefits associated with each of the capital project. What is Initial Outlay? What are the incremental cash flows over the life of the project? What is an appropriate discount rate to use for discounting the cash flows of the project? SN 1 and SN 2 - 40% 2. Are the project comparable based on the standard NPV measure, given that
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Case 10:Phuket Beach Hotel VALUING MUTUALLY EXCLUSIVE CAPITAL PROJECTS Case Overview Planet Karaoke Pub Project Lives Monthly rental (5% increment for 3rd and 4th year) 4 years 170, 000 (THB) 770, 000 to 1, 000, 000 (THB) 55, 000 (THB) Up front renovation cost (Depreciated over the life of project - straight line method with zero salvage value) Overhead expenses Repair and maintenance cost 10, 000 (THB) / year Case Overview Beach Karaoke Pub Project Lives Up front investment
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Chapter 2 Literature review This chapter reviews related literatures on overview of International and Thai tourists, general information about Phuket, current situation of tourist industry, attractions and activities, concept of tourist behavior and tourist perception, marketing concept, as well as previous research. Its purpose is to provide general knowledge and overall concept regarding the theories and previous research related to this research. 2.1 Overview of International and Thai tourists
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12/29/2014 Remembering Tsunami 2004: Phuket bounces back from disaster Asia | The Star Online Remembering Tsunami 2004: Phuket bounces back from disaster by stephen fein Just as popular: The Phi Phi Islands were badly devastated by the tsunami waves but recovered very quickly. Koh Phi Phi is pictured above, 10 years on. — Phuket Gazette/The Nation Tourism industry insiders who have monitored trends in the Phuket tourism industry over the past 10 years describe the recovery after th
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student contract (4Ps) Knowing your participants Selecting cases and readings Using a mix of short (“breather”) and long cases Assigning a term project Case seminar series_Su H Chan A Short Case Phuket Beach Hotel: Valuing Mutually Exclusive Capital Projects* (4 pages) Synopsis Phuket Beach Hotel has an opportunity to lease its underutilized space to a karaoke pub and earn a rental income. Alternatively, the hotel could develop the unused space and create its own pub. The general manager of
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though dealing with it in two different situations. Sam is experiencing the entire story from Phuket, Thailand, where they are hit with a tsunami. Beth was in New York at her dorm, first learning about the tsunami from her boyfriend, Tad. Both characters have different feelings about what has happened, and we, as the readers, get to hear both perspectives. 2. The story takes place on the one hand in Phuket, Thailand during Christmas break of 2004, and on the other side of the world in New York,
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discounts (i.e., coupons), free items, or a contest. Free wifi * Held in physical environments at special events such as concerts, festivals, trade shows. Place : We choose the place is patong hill villa. About Patong | Map About Patong About Phuket | | Patong is Phuket’s main tourist centre. Patong is sits half way down of the island’s, and it is in a famous west coast with its fabulous sandy beaches and picture postcard sunsets. Patong is very busy town, exciting and alive with a resort
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