Please do 3 ### Investment Analysis and Sensitivity for Business Projects**3. Investment Analysis for Grand Hyatt Wailea Resort and Spa**The Grand Hyatt Wailea Resort and Spa on Maui presents a significant investment case with a construction cost of $600 million, translating to $800,000 per room. The operational costs are $135 per occupied room and $80 if unoccupied. Given an average room rate of $500 per night, a 40% marginal tax rate, and an 11% cost of capital, this analysis aims to determine the necessary year-round occupancy rate for the investors to break even over a 40-year period in economic terms. The investment entails $450 million in depreciable building costs over 30 years, while the land costs $150 million. The hotel's present terminal value is $200 million. The analysis seeks to estimate the likelihood of a positive Net Present Value (NPV).**4. Conducting a Sensitivity Analysis for Project Viability**This section focuses on a project's sensitivity analysis with varying parameters. Each parameter reflects low, mean, and high values, consistent over a 10-year period at a 10% discount rate, ignoring taxes and depreciation.- **Sales (units):** - Low: 160 - Mean: 500 - High: 960- **Price (per unit):** - Low: $3,000 - Mean: $3,750 - High: $4,000- **Variable cost (per unit):** Constant at $3,000- **Fixed cost:** - Low: 100,000 - Mean: 200,000 - High: 400,000- **Initial investment:** - Low: 1,000,000 - Mean: 2,000,000 - High: 4,000,000**5. American Fruit Co.’s Plant Construction Decision**American Fruit Co. is evaluating two potential plants for frozen fruit juice processing, differing in capital and labor intensity. The plant choice will depend on the relative costs of capital versus labor in the northern region.This financial exploration aids in understanding investment thresholds, sensitivity to changes in critical inputs, and strategic decision-making in large capital projects.

Number of rooms in the hotel = Total Cost / Cost per room…

3. The recently opened Grand Hyatt Wailea Resort and Spa on Maui cost $600 million, about $800,000 per room, to build. Daily operating expenses average $135 a room if occupied and $80 a room if unoccupied (much of the labor cost of running a hotel is fixed). At an average room rate of $500 a night, a marginal tax rate of 40%, and a cost of capital of 11%, what year-round occupancy rate do the Japanese investors who financed the Grand Hyatt Wailea require to break even in economic terms on their investment over its estimated 40-year life? What is the likelihood that this investment will have a positive NPV? Assume that the $450 million expense of building the hotel can be written off straight line over a 30-year period (the other $150 million is for the land which is not depreciable) and that the present value of the hotel's terminal value will be $200 million.