Phuket Beach Hotel (Case II) Capital Budgeting Decisions Presentation Guidelines Prof. Q. Ma, HADM 7230 Part I Find all relevant cash flows for the lease (to Planet) project and construct the spreadsheet for analysis. Show your spreadsheet and explain.  Explain clearly why each component of your cash flows is relevant.  Explain clearly why some seemingly relevant cash flows are actually irrelevant. Part II Find all relevant cash flows for the build (by Phuket) project and construct the spreadsheet for analysis. Show your spreadsheet and explain.  Explain clearly why each component of your cash flows is relevant.  Explain clearly why some seemingly relevant cash flows are actually irrelevant. Part III Let’s first forget about the fact that the two projects a) have different lives, and b) are mutually exclusive. Rank the projects using the various measures listed in the assignments.  Explain the pros and cons of the criteria  Rank the projects using these criteria  Explain the differences in the rankings  Comment on the best one(s). Part IV Assume we are uncertain with regard to the discount rate. Explain why and how you handle the fact that the two projects are mutually exclusive. Part V Explain why and how you handle the unequal lives of the projects. Part VI Explain why and how you examine the sensitivity of your analysis to the key value drivers. What are the key value drivers you find? How do they affect your decisions? Part VII Make a proposal on what the GM should do. Explain why.