EX 26-9 Net present value method-annuity for a service company OBJ. 3 Outside Inn Hotels is considering the construction of a new hotel for $120 million. The expected life of the hotel is 30 years, with no residual value. The hotel is expected to earn revenues of $35 million per year. Total expenses, including depreciation, are expected to be $20 million per year. Outside Inn management has set a minimum acceptable rate of return of 14%. a. Determine the equal annual net cash flows from operating the hotel. b. Compute the net present value of the new hotel, using the present value of an annuity of $1 table found in Appendix A. Round to the nearest million dollars. Does your analysis support construction of the new hotel? Explain. C