In the WACC approach to NPV, the IRR is the:
A) true Ka B) true financial ROE C) true financial ROA D) true Ke
Food courts with attached dining areas are generally the only foodservice options in the business/industry segment.
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The cost approach to valuation overstates value because it ignores depreciation.
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The IRR is defined as the rate of discount that makes NPV:
A) greater than zero B) equal to the project's terminal value
C) equal to zero D) less than zero
Business/industry organizations desiring to break even on foodservice operations typically want to negotiate a profit/loss contract with a management company.
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What are the two audiences that hospitality websites should be designed for?
A) Search engines and corporate travel agents
B) The potential client and corporate travel agents
C) The potential client and search engines
D) The potential client and the online distribution system
The market value of an income-producing property is its discounted future income stream.
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Business/industry foodservices officials who desire to subsidize the foodservices operation will likely negotiate a contract with a management company to provide foodservices on a cost-plus (fee) basis.
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Hotwire.com and Priceline.com are beneficial to hoteliers because:
A) They can mark up their prices higher
B) They take a percentage of the royalties from the sale
C) They can protect their brands
D) They interface directly with the CRS
Because hospitality properties frequently change hands, the sales comparison approach to valuation is easily applied to such properties.
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