Net Present Value Method-Annuity for a Service Company a. Determine the equal annual net cash flows from operating the hotel. Round to the nearest million dollars. million Present Value of an Annuity of $1 at Compound Interest Net present value of hotel project: $ million c. Does your analysis support the purchase of the new hotel? Feedback Check My Work a. Subtract the total expenses less the depreciation expense from the annual revenues. b. Multiply the annual net cash flow (from a) by the present value of an annuity factor for 8 periods at 10% (Appendix A ). Subtract the initial investment