Net present value methodannuity for a service company Stay-In-Style (SIS) Hotels Inc. is considering the...
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Net present value methodannuity for a service company Stay-In-Style (SIS) Hotels Inc. is considering the construction of a new hotel for $81 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 $16 million per year. Stay-In-Style Hotels management has set a minimum acceptable rate of return of 9%. a. Determine the equal annual net cash flows from operating the hotel. Enter your answer in million. Round your answer to two decimal places. fill in the blank 1 of 1$ million Present Value of an Annuity of $1 at Compound Interest Periods 8% 9% 10% 11% 12% 13% 14%
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