Phuket beach hotel case study solution free essays 1 20

A pub named as Planet Karaoke Pub made an offer to the hotel through signing a four year leasing contract with Phuket beach Hotel on a rent of 170,000 Baht on a monthly basis. By making the evaluation of this option, the manager of the company is considering another option that is making its own pub on unutilized space.

This is just a sample partial case solution. Please place the order on the website to order your own originally done case solution. Phuket Beach Hotel has the opportunity to rent it is not enough space in a karaoke bar and earn rental income. Also, the hotel can develop unused space and create your own pub.

Mike Campbell, the manager of PBH, considered another alternative of opening Beach Karaoke Pub (BKP), a pub owned by PBH itself, for six years on the un-used floor. Hence, the two projects are mutually exclusive. The projects involve different initial capital expenditures and result in different operating cash flows.

The life of the project will be of 6 years and thus the projects are known to be mutually exclusive. Capital expenditure will be involved in both the projects and that in turn will result in dissimilar operating cash flows.