Question

Kim Hotels is interested in developing a new hotel in Seoul. The company estimates that the...

Kim Hotels is interested in developing a new hotel in Seoul. The company estimates that the hotel would require an initial investment of $16 million. Kim expects the hotel will produce positive cash flows of $2.4 million a year at the end of each of the next 20 years. The project's cost of capital is 12%.

  1. What is the project's net present value? Negative value, if any, should be indicated by a minus sign. Enter your answers in millions. For example, an answer of $10,550,000 should be entered as 10.55. Do not round intermediate calculations. Round your answer to two decimal places.
    $ ______ million

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