DelRay Financial Feasibility Project_Template

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University of Central Florida *

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6477

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Information Systems

Date

Dec 6, 2023

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pdf

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12

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Full Name: Hotel DelRay New Property Management System ( ) Acquisition & Installation Project Net Investment Value ( ) Estimation for the New PMS Technology for the Initi Cost of the New PMS System $57,000 Additional Staffing & Delivery Cost $16,000 Shipping, Installation & Insurance Cost $4,000 Maintenance Cost $2,000 Design, Build, & Implementation of the New Technology $3,000 After-tax Salvage Value $9,200 The Net Investment Value (NINV) 1
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Hotel DelRay New Property Management System ( ) Acquisition & Installation Project Capital Acquisition and Allocation & Estimation of the Cost of Capital ( After-tax Cost of Debt M P 0 P net C k dbt k d Cost of New Retained Earnings (Internal Common Equity) d 0 d 1 P 0 g k e Cost of External Equity (New Common Stock issuances) P 0 P net d 0 d 1 g k ne The Cost of Capital (WACC) k a 1
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Hotel DelRay New Property Management System ( PMS ) Acquisition & Installation Project Estimation of the Flow of Funds ( Stream of Expected After-Tax CFs 4-year Financial Projections and After-tax Pro-Forma CF Structure Year 1 Year 2 Year 3 Sales Projections Overhead Costs: Additional Staffing and Dellivery Cost Shipping, Installation, and Insurance Cost Maintenance Cost Design, Build, and Implementation of the New Technology New Equipment Cost N/A N/A Less: Depreciation Total Overhead Cost After-tax Salvage Value N/A N/A Before-tax Cash Flows Tax at 40.00% Add: Depreciation After-tax Cash Flows 1
Year 4 N/A N/A 2
Hotel DelRay New Property Management System ( ) Acquisition & Installation Project Financial Feasibility Analysis Years After-tax CFs Cumulative CFs 0 1 2 3 4 WACC 0.00% Project's Payback Period The Net Present value ( NPV Project Profitability Index ( The Internal Rate of Return ( 1
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Hotel DelRay New Property Management System ( PMS ) Acquisition & Installation Project Discussion of Your Results and Findings 1
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