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December 25, 2021

Project: Renovating the Hungerford Hotel Instructions: The owners of the Hungerford Hotel are considering wheth

Business & Finance /Management

Project: Renovating the Hungerford Hotel

Instructions:

The owners of the Hungerford Hotel are considering whether they should hold the hotel or renovate it, as well as when they should consider selling the hotel. Answer the following questions based on two scenarios for the Hungerford Hotel that are shown on the last page in this document. The first scenario is the base case, which Professor deRoos analyzed in the video on the previous page “Case Study: The Hungerford Hotel.” The second scenario is the renovation case, which assumes that the renovation has been completed. You can assume that the hurdle rate is 14%.

sha613_renovating-hungerford-project.docx

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