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Net Present Value Method-Annuity Take a Load Off Hotels is considering the construction of a new hotel for $40 million. The expected life of the hetel is 20 years with no residual value. The hotel is expected to earn revenues of $7.5 million per year. Total expenses, including straight-line depreciation, are expected to be $3 million per year. Take a Load offs management has set a minimum acceptable rate of return of 10%. Round all computations and your final answer to one decimal place. a. Determine the equal annual net cash flows from operating the hotel. x milion b. Calculate the net present value of the new hotel, using the present value factor of an annuity of $1 at 10% for 20 periods of 8.5136. c. Which of the following statements is correct regarding this potential project? a. They should build the hotel because the present value of the hotels operating cash flows exceeds the construction costs. b. They should build the hotel because the present value of the hotel's operating cash flows is less than the construction costs. c. They should build the hotel because the present value of the hotel's operating cash flows is equal to the construction costs. d. They should not build the hotel because the net present value is negative