Read the Star Takeover Concept Check

Read the Star Takeover Concept Check on pp. 282-284. Answer the following questions: 

Calculate the IRR and NPV of this project utilizing a 12% discount rate. Ms. Brown was able to secure a loan for $1,740,000, and an equity investor agreed to invest the remaining $460,000 in exchange for 10% ownership in the project. 

Calculate and show the calculation for the loan-to-value ratio for this project?

3)     If the investor has a hurdle rate of 14%, does this project meet or exceed the investor's requirements? Please show your calculations.

On Question #3, you must explain your answer (not just "yes" or "no") to get credit.
Questions – 75 words or more. 
In any firm it is important to understand capital budgeting cash flows.  It can impact several areas of the operation including accounting, information systems, management, marketing and operations.

After learning about the three investment analysis methods (return on investment (ROI), net present value (NPV), and internal rate of return (IRR)), which do you believe is the best method for a hospitality business to use?  Please explain the advantages and disadvantages of your chosen method.

 
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