You are the boss!

The Resort Project

Step into the shoes of an entrepreneur as you embark on a virtual journey to build and operate a resort! In this engaging quiz, you will be given a set of parameters and initial data points related to the creation and management of a resort business. Your task will be to use this information to compute various aspects of the business, such as total investment, operating costs, revenue projections, and profitability.

This exercise is designed to test your analytical skills, business acumen, and ability to make informed decisions based on the data provided. Moreover, it will provide you with a glimpse into the complexities involved in establishing and running a successful resort.

Here’s the information you’ll need to get started.

  • Land Lease: 25 years
  • Land Cost: $250,000
  • Construction: $750,000
  • Build Completion: 9 Months
  • Capacity: 50 rooms x 2 pax
  • 2 x Guest Transportation Vehicles: $30,000 each
  • Room Revenue: $80 / room / night
  • Restaurant Revenue: $25 per pax
  • Cost of Food from The Restaurant: 30% of revenue
  • Cost of All The Staff: $25,000 monthly
  • Cost of Fuel For The 2 Cars: $1,000 monthly
  • Cost of Borrowing For This Investment: 10% per year (simple interest)

    • Points for discussion

    • Free free to bring up any points or questions for discussion.
    • The total initial investment needed.
    • The monthly operating costs.
    • The potential monthly and annual revenue from room bookings and the restaurant.
    • The break-even point.
    • The total borrowing cost over 25 years.
    • The net profit at the end of the land lease term (25 years).