Forecasts of the future business environment and of demand are only strong estimates done according to the market analysis and experiences of experts. For example notice that the occupancy percentage is expected to be 69% and increases to a stabilized level of 74% by 20X3, and the average room rate in 20X1 is $67.25 and increases to 78.25 by 20X5. These are all estimates done according to logical assumptions.

    One of the most uncertain items about the project is the governmental influence on the investment. The applied interest rate of 20 % is estimated according to the future expectations about Turkish economy. In the unstable economic environment of Turkey it is hard to make that kind of estimates. This hardness is overcame by 5 years of payback period, which can be considered as short for an investment of over 1 million dollars.

    Total investment costs are calculated according to planned specifications of the hotel. During the implementation of the project there can be changes in these specifications and these can have impacts on the financial and cost values realized.

    In financing the investment one of the strongest sources of finance were the funds expected from the graduates. Since nobody can guarantee this situation it still remains as a serious assumption.

    As denoted before 595,000$ of the project is considered to be financed by long term loan of 5 years at 20% interest rate. Agreeing with a bank on this kind of a credit is not certain. This uncertainty can create a risk in financing the project.

    All these uncertainties and risks are evaluated by the project group and the project is still considered to be feasible since all these uncertainties and risks can be overcame.