PHUKET BEACH HOTEL: VALUING MUTUALLY EXCLUSIVE PROJECTS I. STATEMENT OF THE PROBLEM This is an assessment of the different costs and benefits of two mutually exclusive capital projects involving the use of an underutilized space located on the second floor of the main building of Phuket Beach Hotel (PBH). The first project‚ Planet Karaoke Pub (PKP) offered to sign a four-year lease agreement with (PBH) while the second project‚ Beach Karaoke Pub (BKP)‚ is a pub the PBH itself‚ plans to put
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Log In Sign Up Explore Phuket Beach Resort Case AnalysisGraduate School of BusinessDe La Salle University I.Statement of the Problem Should the management of Phuket Beach Resort accept the offer made by PlanetKaraoke Pub to set up an outlet inside the hotel or should the managementoperate a pub‚ Beach Karaoke Pub‚ by itself? II.Case Background Mike Campbell‚ General Manager of Phuket Beach Hotel is considering an offermade by Planet Karaoke Pub‚ a fast expanding company‚ which is looking
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General Manager‚ Phuket Beach Hotel From: Albert‚ Andy‚ Becca‚ Chris‚ & Derek Consulting Date: June 14‚ 2011 Re: Valuation of Potential Karaoke Pub Projects Thank you for retaining AaBCD Consulting in the valuation of your future capital improvement project. There are two mutually exclusive capital improvement projects under consideration: lease under-utilized space to an unrelated third party‚ Planet Karaoke Pub‚ or invest greater capital to open and manage your own nightclub‚ Beach Karaoke Pub
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770‚000 6. WACC = 10.75% Yr. 3 Yr. 4 2‚142‚000 2‚142‚000 -192500 -192500 -10‚000 -10‚000 -1‚767‚125 -1‚855‚500 172‚375 -51‚713 120‚662 192‚500 84‚000 -25‚200 58‚800 192‚500 313‚162 230‚536 251‚300 167‚039 Analysis of Cash Flow - Beach Karaoke Pub figures in baht Yr. 0 Sales less less less less less Food and Beverage Cost Other Operating Expenses Depreciation Increase in repair and maintenance expenses Decrease in net room revenue Additional Operating Income less Taxes NOPAT add
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TO: General Manager of Phuket Beach Hotel RE: Investment Consultation: Planet Karaoke Pub Vs. Beach Karaoke The Phuket Beach Hotel faces development options in its future. Planet Karaoke Pub‚ a restaurant chain‚ has approached the hotel to obtain a 4 year lease to occupy a 3‚000 square foot space. Should the Phuket Beach Hotel invest in Planet Karaoke’s proposal? Or‚ should the hotel develop its own karaoke business? Kornkrit and Wanida believe Group 3 is the most equipped to handle the analysis
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Phuket Beach Hotel Case Analysis Phuket Beach Hotels (PBH) management has been approached by Planet Karaoke Pub (PKP) to lease a vacant space within the hotel. Management is intrigued by the offer because the space is currently not being used. Due to the recent success of karaoke pubs management is also considering creating a pub which they would call Beach Karaoke Pub (BKP). Finally‚ there is a possibility that the best option will be to seek an entirely
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I. INTRODUCTION Located just southwest of St. Louis‚ and 2 miles east of Eureka in an old flood plain used for farming‚ lies a ghost town called Times Beach‚ Missouri. Originally being marketed as a summer hideaway‚ one could purchase a 20 x 100 ft. lot for $67.50 in 1925 and even receive a six-month newspaper subscription. After the Great Depression and gas rationing during World War II‚ the town became a small community of low-middle-class economic citizens. In 1983‚ due to a dioxin contamination
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competition at Dicky Beach Skate Park‚ Sunshine Coast. Hundreds of rowdy teenagers are expected to compete and thousands more as spectators this weekend. These rowdy teenagers WILL create a ruckus for locals and visitors. Further problems will result in the damage to the local environment. As the crowds of spectators descend on Dicky Beach‚ excessive transport‚ pollution and vandalism will be exposed to the landscape. Therefore‚ should not be hosted in this area. Local Dicky Beach resident‚ Mrs. Marther
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in EAL and didn’t score as well on his service wide‚ ET1 Beach took action and scheduled several training sessions for this member to expand his knowledge base and increase his effectiveness as a technician at C3CEN and the Coast Guard. • ET1 Beach assisted ETCS with mid-marks counseling sessions to improve his subordinates marking input and understanding of writing and bullet input for their future as supervisors. • Petty Officer Beach continues to train direct subordinates and other field technicians
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of New South Wales (28°38’35.04”S‚ 153°36’54.47”) Major Issues and Geographical Processes/Effects * Erosion and rising sea levels present themselves as the most major issues; * Particularly on the strip of coast known as Belongil Beach * Erosion along Belongil has created major obstacles for the construction of new buildings‚ and the preservation of pre-existing estates; with many having already been destroyed due to the instability of sand/soil structure.
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