Net Present Value Method-Annuity Take a Load Off Hotels is considering the construction of a new hotel for $11,200,000. The expected life of the hotel is 7 years with no residual value. The hotel is expected to earn revenues of $9,472,000 per year. Total expenses, including straight-line depreciation, are expected to be $8,000,000 per year. Take a Load Off's management has set a minimum acceptable rate of return of 15%. a. Determine the equal annual net cash flows from operating the hotel. b. Calculate the net present value of the new hotel, using the present value factor of an annuity of $1 table below. If required, round to the nearest dollar. If the net present value is negative, enter the amount using a minus sign. Present Value of an Annuity of $1 at Compound Interest Year 6% 10% 12% 15% 20% 1 0.943 0.909 0.893 0.870 0.833 2 1.833 1.736 1.690 1.626 1.528 3 2.673 2.487 2.402 2.283 2.106 4 3.465 3.170 3.037 2.855 2.589 5 4.212 3.791 3.605 3.353 2.991 6 4.917 4.355 4.111 3.785 3.326 7 5.582 4.8681 4.564 4.160 3.605 8 6.210 5.335 4.968 4.487 3.837