Q: Ronald Rump (a.k.a. The Ronald) buys a 500 room luxury hotel in Milwaukee for $180,000,000. If the hotel makes a profit of $100 / night / room and every room is booked every night (0% vacancy), how many years til they break even? Assume that a year has 360 days.
UNANSWERED.
The correct answer is D.
A: 10 years. 500 rooms * $100 / room = $50,000 is made every night. $50,000 * 360 days = $18,000,000 is made every year. It would take 10 years ($180,000,000 / $18,000,000) to break even.
