Net Present Value Method-Annuity for a Service Company Outside Inn Hotels is considering the construction of a new hotel for $80 million. The expected life of the hotel is 10 years with no residual value. The hotel is expected to earn revenues of $24 million per year. Total expenses, including depreciation, are expected to be $16 million per year. Outside Inn management has set a minimum acceptable rate of return of 14%. Assume straight-line depreciation. Present Value of an Annuity of $1 at Compound Interest Periods 8% 9% 1 11% 0.92593 0.91743 0.90909 0.90090 0.89286 10% 12% 13% 14% 0.88496 0.87719 2 1.78326 1.75911 1.73554 1.71252 1.69005 1.66810 1.64666 3 2.57710 2.53129 2.48685 2.44371 2.40183 2.36115 2.32163 4 3.31213 3.23972 3.16987 5 3.99271 3.88965 3.79079 6 4.62288 4.48592 4.35526 3.10245 3.03735 3.69590 3.60478 4.23054 4.11141 3.99755 3.88867 2.97447 2.91371 3.51723 3.43308 7 5.20637 5.03295 4.86842 4.71220 4.56376 4.42261 4.28830 8 5.74664 5.53482 5.33493 5.14612 4.96764 4.79677 4.63886 9 6.24689 5.99525 5.75902 5.53705 5.32825 5.13166 4.94637 10 6.71008 6.41766 6.14457 5.88923 5.65022 5.42624 5.21612 a. Determine the equal annual net cash flows from operating the hotel. Round to the nearest million dollars. million