Subject: Finance
Task:
Case Study: Lighting the Way at the Manor House Hotel (attached)
After reading the case study ‘Lighting the Way at the Manor House Hotel´Answer the following questions:
1. Describe the business project and the investment choice to be made. (prove using financial calculations)
2. What factors have the Barmores considered regarding the project’s cash flows? (prove using financial calculations)
3. What is the opportunity cost of capital? How was it determined? (prove using financial calculations)
4. What investment criteria will the Barmores use to choose among the lighting options? (prove using financial calculations)
5. Apply the investment criteria you mentioned in the previous question and show which should be the decision of the Barmores (prove using financial calculations)
Formalities:
• Have to provide the excel file used for all the calculations and it should also be fully explained in the word file
• It Is very important that all answers should be clearly presented on the word & excel file