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Question 14
Question 16 of 8
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The owners have \$780,000 invested in an 80-room motel and the owners want an after tax return on their investment of 10\%. Occupancy is expected to be 75\% in the next year and the
rate is 34\%. Calculate the following:
a) return on investment after tax: \$\_
Round to the nearest dollar where needed.
a) Return on investment (AT): \$78,800
b) Operation income: \$119,394
c) Income tax: \$40,594
a) Return on investment (AT): \$78,000
b) Operation income: \$118,182
c) Income tax: \$40,182
a) Return on investment (AT): \$78,080
b) Operation income: \$118,303
c) Income tax: \$40,223
b) Operating income: \$\nc) Income tax: \$