Net present value method-annuity for a service company Stay-In-Style (SIS) Hotels Inc. is considering the construction of a new hotel for $56 million. The expected life of the hotel is 8 years with no residual value. The hotel is expected to earn revenues of $17 million per year. Total expenses, including depreciation, are expected to be $11 million per year. Stay-In-Style Hotels' management has set a minimum acceptable rate of return of 12%. a. Determine the equal annual net cash flows from operating the hotel. Enter your answer in million. Round your answer to two decimal places. million Present Value of an Annuity of $1 at Combound Interest b. Compute the net present value of the new hotel, using the present value of an annulty of $1 table above. Round to the nearest million dollars. If required, use the minus sign to indicate a negative net present value. Net oresent value of hotel prolect: s million b. Compute the net presient value of the new hotel, using the present value of an annuity of $1 tabie 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: 5 million c. Does your analysis support construction of the new hotel? , because the net present value is Feedtuck T Creck Uy work a. Subtract the total expenses less the depreciation expense from the annual revenues: b. Multiply the annual net cash flow (from a) by the present value of an annuty factor for 8 periods at 12% (Refer Appendox A in the text.), Subtract the in tial