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.