Net Present Value Method-Annuity for a Service Company Welcome Inn Hotels is considering the construction of a new hotel for $72 million. The expected life of the hotel is 7 years with no residual value. The hotel is expected to earn revenues of $22 million per year. Total expenses, including depreciation, are expected to be $15 million per year. Welcome Inn management has set a minimum acceptable rate of return of 13%. Assume straight-line depreciation. 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 b. Calculate the net present value of the new hotel using the present value of an annuity of $1 table above. Round to the nearest million dollars. If required, use the minus sign to indicate a negative net present value. Net present value of hotel project: $ million C. Does your analysis support the purchase of the new hotel? because the net present value is