AFM211 Lecture Notes - Lecture 12: Picea Rubens, Cash Flow Statement, Cash Flow
30 May 2018
School
Department
Course
Professor
Red spruce resort
Calculate: ROI, payback period
Parent company Venere does the financing decision
• If I’ Ji, I do’t orr aout fiaig
Business information:
• A resort used for corporate for business or leisure for family located in BC
• Some competitors open year-round, these guys only open for a period
• Multiple revenue streams
Value proposition:
• pet friendly facility
• specific recreational activities
• two conference building for large corporate groups, events and weddings
taking place in October 2014
• we want to do the renovation before the next season in May 2015
stakeholders:
• Venere- the parent company who finance the investment
• The parent company owns 35 resorts, some in DC, many in Ontario (they want to grow in
Ontario which is problematic for Red Spruce)
• Probably a lot of resort all wanting finance from the parent company
• Wakeman – director of rooms (always want better rooms)
• Customers- 32% left survey indicated a need for renovation
PLAN
Is it a profitable investment?
a. Two options: Renovation or no renovation
b. Analysis: qualitative and quantitative
i. Qualitative for renovation: Pros and Cons
ii. Quantitative for renovation: do projections and dollar values see what happens
iii. Qualitative for no renovation: other improvements
iv. Quatitatie for o reoatio: the ase tells ou if ou do’t do the reoatio,
the numbers of guest would decrease. Do projections and dollar values see
what happens
v. Compare both quantitative for renovation and no renovation to see the
difference between alternative
c. Cash flow statement
d. Future considerations: one time & on-going cash flows.
i. Calculate payback and ROI
find more resources at oneclass.com
find more resources at oneclass.com
Document Summary
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