Net Present Value MethodAnnuity for a Service Company Amenity Hotels Inc. is considering the construction of a new hotel for $70 million. The expected life of the hotel is 10 years with no residual value. The hotel is expected to earn revenues of $19 million per year. Total expenses, including depreciation, are expected to be $14 million per year. Amenity Hotels' management has set a minimum acceptable rate of return of 10%. a. Determine the equal annual net cash ows from operating the hotel. Enter your answer in million. Round your answer to two decimal places. $[ 9 | 1: million Present Value of an Annuity of $1 at Compound Interest Periods 8% 9% 10% 1 1% 12% 13% 141% 1 0.92593 0.91743 0.90909 0.90090 0.89236 0.88496 0.37719 2 1.78326 1.75911 1.73554 1.71252 1.69005 1.66810 1.64666 3 2.57710 2.53129 2.48685 2.44371 2.40133 2.36115 2.32163 4 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 3.43300 6 4.62208 4.48592 4.35526 4.23054 4.11141 3.99755 3.38067 7 5.20637 5.03295 4.36042 4.71220 4.56376 4.42261 4.28930 3 5.74664 5.53432 5.33493 5.14612 4.96764 4.79677 4.63036 9 6.24699 5.99525 5.75902 5.53705 5.32825 5.13166 4.94637 10 6.71003 6.41766 6.14457 5.33923 5.65022 5.42624 5.21612 b. Compute the net present value ofthe new hotel, using the present value of an annuity of $1 table above. Round to the nearest million dollars. If required, use the minus sign to indicate a negative net present value. Net present value of hotel project: $| 121x million