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a. Determine the equal annual net cash flows from operating the hotel Hound to the nearest motor million Present Value of an Annuity of $1

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a. Determine the equal annual net cash flows from operating the hotel Hound to the nearest motor million Present Value of an Annuity of $1 at Compound Interest Periods 104 11% 124 134 144 1 0.92593 0.91743 0.90909 0.00090 0.89206 0.85496 0.07719 2 1.78326 1.75911 1.73554 1.71352 1,69005 1.66810 1.6666 2.57710 2.53129 2.4685 2.44371 2.40180 2.36115 2.32163 1 3.31213 3.23972 3.16987 3.10245 3.03735 2.97447 2.91371 5 3.99271 3.88965 3.79079 3.69590 3.60478 3.51723 3.43308 6 4.62288 4.48592 4.35526 4.23054 3.99755 3.357 7 5.20637 5.03295 4.86542 4.71220 4.56376 4.42261 42830 8 5.74564 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 6.71008 5,41766 6.14457 5.38923 5.65022 5.42624 5.21612 b. Calculate the net present value of the new hotel using the present value of an annudy of 51 table above. Round to the nearest million dollars. If required, then it comes negative net present value Net prenent value of hotel project: milion c. Does your analysis support the purchase of the new hotel , because the net present value is Previous Net Present Value Method-Annuity for a Service Company Welcome Inn Hotels is considering the construction of a new hotel for $56 million. The expected ife of the hotel ist years with no resical valut. The hotel is expected to earn event of 17 million per year. Total expenses, including depreciation, are expected to be $11 million per year. Welcome to management has set ammum comblew of return of 121. Asume straight-line depreciation a. Determine the equat annual net enth rows from operating the hotel. Round to the nearest milion dolor million Present Value of an Annuity of $1 at Compound Interest Periods 89 104 11% 12 134 14 1 0.92593 0.9174) 0.90909 0.0003 0.19286 0.58496 0.57719 3.78326 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 231215 3.23972 3.16987 3.10245 3.03735 2.97447 2.91371 5 3.99271 3.88965 3.79079 3.69590 3.60478 3.51723 1.43308 6 4.62288 4.48592 4.35526 4.23054 4.11141 3.99755 388867 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

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