Net present value methodannuity for a service company Stay-In-Style (SIS) Hotels Inc. is considering the construction of a new hotel for $90 million. The expected life of the hotel is 10 years with no residual value. The hotel is expected to earn revenues of $26 million per year. Total expenses, including depreciation, are expected to be $15 million per year. Stay-In-Style Hotels management has set a minimum acceptable rate of return of 14%. a. Determine the

Net present value method-annuity for a service company year. Total expenses, including depreciation, are expected to be $15 million per year. Stay-In-Style Hotels' management has set a minimum acceptable rate of retum of 14%. a. Determine the equal annual net cash flows from operating the hotel. Enter your answer in million. Round your answer to two decimal places. \$ milion Present Value of an Annuitv of $1 at Compound Interest value. Net present value of hotel project: $ milion c. Does your analysis support construction of the new hotel? , because the net present value is