Managerial accounting 11/21

a. $19 million EX 26-9 Net present value OBJ. Keystone Hotels is considering the construction of a new hotel for s120 million. The ex pected life of the hotel is 30 years, with no residual value. The hotel is expected to earn revenues of $47 million per year. Total expenses, including depreciation, are expected to be $32 million per year. Keystone management has set a minimum acceptable rate of return of 14%