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Net Present Value Method - Annuity for a Service Company a . Determine the equal annual net cash flows from operating the hotel. Round to

Net Present Value Method-Annuity for a Service Company
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
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 positive.
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