Stay$-$In$-$Style $($SIS$)$ Hotels Inc. is considering the construction of a new hotel for $$60$ million. The expected life of the hotel is $9$ years with no residual value. The hotel is

expected to earn revenues of $$18$ million per year. Total expenses, including depreciation, are expected to be $$12$ million per year. Stay$-$In$-$Style 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

minus sign to indicate a negative net present value.

Net present value of hotel project:

million

c$.$ Does your analvsis support construction of the new hotel?

:$\text{'},$ because the net present value is $.$