Net Present Value Method-Annulty for a Service Company Amenity Hotels Inc. is considering the construction of a new hotel for $72 million. The expected life of the hotel is 7 years with no residual value. The hotel is expected to earn revenues of $22 million per year. Total expenses, including depreciation, are expected to be $15 million per year. Amenity Hotels' management has set a minimum acceptable rate of return of 13%. 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 Compound Interest Present Value of an Annulty of $1 at Compound 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 present value of hotel project: 5 million c. Does your analysis support construction of the new hotel? because the net present value is