W Application) ebook Show Me How Printem Net Present Value MethodAnnuity for a Service Company Welcome Inn Hotels is considering the construction of a new hotel for $60 million. The expected of the hotel is 19 years with no residual value. The hotel is expected to earn revenues of $18 million per year. Total expenses, including deprecation, are expected to be $12 million per year. Welcome in management has set a minimum acceptable rate of return of 12%. Assume straight-line depreciation a. Determine the equal annual net cash flows from operating the hotel. Round to the nearest milion dollars 9.16 X million Present Value of an Annuity of $1 at Compound Interest Periods 8% 10% 11% 12% 13% 149 1 0.92593 0.91743 0.90909 0.90090 0.39286 0.88.196 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 236115 2.32163 4 3.31213 3.23972 3.16967 3.10245 3.03735 2.97447 2.91371 3.99271 3.88965 3.79079 3.69590 3.60478 3.51723 3.43308 6 4.62288 4.48592 4.35526 4.23054 4.11141 3.99755 3.88867 7 5.20637 5.03295 4.86842 4.71220 14.56376 4.42261 4.28830 B 5.74664 5.53482 5.33493 5.14612 4.96764 4.79677 4.63886 6.24689 5.99525 5.75902 5.53705 5.32825 5.13166 4.94637 10 6.71005 6.41766 6.14457 5.88923 5.65022 5.42624 5.21612 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, or the mi sign to indicate a negative net present value Net present value of hotel project: 7.47 X milion