Business, 11.12.2019 04:31 kiasiab17

Ex 26-9 net present value method—annuity for a service company obj. 3 welcome inn hotels is considering the construction of a new hotel for $90 million. the expected life of the hotel is 30 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 $15 million per year. welcome inn management has set a minimum acceptable rate of return of 14%a. determine the equal annual net cash flows from operating the hotel. round to the nearest million dollars.$ millionb. calculate the net present value of the new hotel. use 7.003 for the present value of an annuity of $1 at 14% for 30 periods. round to the nearest million dollars. net present value of hotel project: $ millionc. does your analysis support construction of the new hotel? , because the net present value is .

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Ex 26-9 net present value method—annuity for a service company obj. 3 welcome inn hotels is consider...

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