0 Consider how Bear Valley, a popular ski resort, could use capital budgeting to decide whether the $85 million Waterfall Park Lodge expansion would be a good investment BB Click the icon to view the expansion estimates in to view the present value annuity factor table Click the icon to view the present value factor table.) Data Table Con to view the future value annuity factor tablo (Click the icon to view the future value factor table) Read the requirements it Requirement 1. What is the project's NPV? Is the investment attractive? Why or why not? Calculate the not present value of the expansion Round your answer to the nearest whole dollar Use parentheses or a minus sign for a negative net present value) Net procent value of expansion Data Table lle Assume that Bear Valley's managers developed the following estimates concerning a planned expansion to its Waterfall Park Lodge (all numbers assumed): V .. pe Iss . . .. Number of additional skiers per day... 124 Average number of days per year that weather conditions allow skiing at Bear Valley 165 Useful life of expansion (in years) 8 Average cash spent by each skier per day.... $ 240 Average variable cost of serving each skier per day . $ 136 Cost of expansion... $ 8,500,000 Discount rate.. 10% Assume that Bear Valley uses the straight-line depreciation method and expects the lodge expansion to have a residual value of $700,000 at the end of its eight-year life. It has already calculated the average annual net cash inflow per year to be $2,127 840. 1% 18% 0.847 1.566 2.174 2.690 3.127 20% 0.833 1.528 2106 2.589 2.991 Jativ Present Value of Annuity of $1 Periods 2% 3% 4% 5% 6% 8% 10% 12% 14% 16% Period 1 0.990 0.980 0.971 0.962 0.952 0.943 | 0.926 0.909 | 0.893 0.877 0.862 Period 2 1.970 1.942 1.913 | 1.886 1.859 1.833 1783 1.736 1.690 1.647 1.605 Period 3 2.941 2.884 2.8292775 2.723 2673 2.577 2.487 2402 2.322 2.246 Period 4 3.902 3.808 3.717 3.630 3.546 3.465 3.312 3.170 3.037 2.914 2.798 Period 5 4.8534713 4.580 4452 4.329 4.212 3.993 3.791 3.605 3.433 3.274 Period 6 5.795 5.601 5.417 5.2425.076 4.917 4.623 4.355 4.111 3.889 3.685 Period 7 6.728 6.472 6.230 6.002 5.786 5.5825.206 4.868 4.564 4.288 4.039 Period 8 7652 7.325 7.020 6.733 6.463 6.210 6.747 5.335 4.968 4.639 4.344 Period 9 8.566 8.162 7.786 7.435 7.108 6.802 6.247 5.759 5.328 4.946 4.607 Period 10 9.471 8.983 8.530 8.111 7.722 7.360 6710 6.145 5.660 5.216 4.833 Period 11 10.368 9.787 9253 8.760 8.306 7.887 7.139 6.495 5.938 5.453 5.029 Period 12 11.255 10.575 9.954 9.385 8.863 8.384 7.536 6.814 6.194 5.660 5.197 Period 13 12.134 11.348 10.635 9.986 9.394 8.853 7.904 7.103 6.424 5.842 5.342 Period 14 13.004 12.106 11 296 10.563 9.899 9.295 8.244 7.3676.628 6.002 5.468 Period 15 13.865 12.849 11.938 11.118 10.38097128.559 7.606 6.811 6.142 5.575 Period 20 18.046 16.351 14.877 13.590 12.462 11.470 9.818 8.514 7.469 6.623 5.929 Period 25 22.023 19.523 17.413 15.622 14.094 12783 10.675 9.077 7.843 6.873 6.097 Period 30 25 808 | 22.396 19.600 17.292 15.372 13.765 11.2589.4278.055 7.003 6.177 Period 40 32.835 27 365 23. 115 19.793 17.159 15.046 11.925 9.7798.244 7 105 6.233 3.498 3.812 4.078 4,303 4.494 3.326 3.605 3.837 4.031 4.192 4.656 4.793 4.910 5.009 5.092 5.353 5.467 5,517 5.548 4.327 4.439 4.533 4.611 4.675 4.870 4.948 4.979 4.997 present Value of $1 Periods 1% 2% 3% 4% 5% 6% 8% 10% 12% 14% 16% 18% 20% Period 1 0.990 0.980 | 0.971 0.962 0.952 0.943 0.926 0.909 0.893 0.877 0.862 0.847 | 0.833 Period 2 0.9800.961 0.943 0.925 0.907 0.890 0.8570.826 0.797 0.769 0.743 0.7180.694 Period 3 0.971 0.942 | 0.915 0.889 0.864 0.840 0.794 0.751 0.712 0.675 0.641 0.609 0.579 Period 4 0.961 0.924 0.888 0.855 0.823 0.792 0.735 0.683 0.636 0.592 0.552 0.516 0.482 Period 5 0.951 0.906 0.863 0.822 0.784 0.747 | 0.681 0.621 0.567 0.519 0.476 0.437 0.402 Period 6 0.942 0.888 0.837 0.790 0.746 0.705 0.630 0.564 0.507 | 0.456 0.410 0.370 0.335 Period 7 0.933 0.871 0.813 0.760 | 0.711 0.665 0.583 0.513 0.452 0.400 0.354 0.3140.279 Period 8 0.923 0.853 0.789 0.731 0.677 0.627 0.540 0.467 0.404 0.351 0.305 0.266 0.233 Period 9 0.914 | 0.837 0.766 0.703 0.645 | 0.592 0.500 0.424 0.361 0.308 | 0.263 0.225 0.194 Period 10 0.905 0.820 0.744 0.676 0.614 0.558 0.463 0.386 0.322 0.270 0.227 0.191 0.162 Period 110.896 0.804 0.722 0.650 0.585 0.527 0.429 0.350 0.287 0.237 0.1950.162 0.135 Period 12 0.887 0.788 0.701 0.625 0.567 0.497 0.397 0.319 0.257 0.208 0.168 0.137 0.112 Period 13 0.879 0.773 0.681 0.601 0.530 0.469 0.368 0.290 0.229 0.182 0.145 0.116 0.093 Period 14 0.870 0.758 0.661 0.577 0.505 0.442 0.340 0.263 0.205 0.160 0.125 0.099 0.078 Period 15 0.861 0.743 0.642 0.555 0.481 0.417 0.315 0.239 0.183 0.140 0.108 0.084 0.065 Period 20 0.820 0.673 0.554 0.456 0.377 | 0.312 0.215 0.149 0.104 0.073 0.051 0.037 0.026 Period 25 0.780 0.610 0.478 0.375 0.295 0.233 0.146 0.092 0.059 0.038 0.024 0.016 0.010 Period 30 0.742 0.552 0.412 0.308 0.231 0.174 0.099 0.057 0.033 0.0200.0120.007 0.004 Period 40 0.672 0.453 0.307 0.208 0.142 0,097 0.046 0.022 0.011 0.005 0.003 0.001 0.001 1% 14% pr Future Value of Annuity of $1 Periods 2% 3% 4% 5% 6% 8% 10% 12% 16% 18% 20% Period 1 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 Period 2 2010 2.020 2030 2040 2050 2.060 2.080 2.100 2.120 2140 2. 160 2.180 2200 Period 3 3.030 3060 3.091 3.122 3.153 3.184 3.246 3.310 3.374 3.440 3.506 3.572 3.840 Period 4 4060 4.122 4 184 4.246 4310 4.375 4.506 4641 4.779 4.921 5.066 5.215 5.368 Period 5 5 101 5.204 5.309 5.416 5.526 5.637 5.887 6.105 6.353 6.610 6.877 7.154 7.442 Period 6 6.152 6.308 6.468 6.633 6.802 6.975 7.336 7.716 8. 115 8.536 8.977 9.442 9.930 Period 7 7214 7.434 7.662 7.898 8.142 8.394 8.923 9.487 10.089 10.730 11.414 12.142 12. 916 Period 8 8.286 8583 8.892 9.214 9.549 9.897 10.63711436 12.300 13.233 14.240 15.327 16,499 Period 9 9.369 9.755 10.159 10.583 11.027 11.491 12.488 13.579 14.776 16.085 17.519 19.096 20.799 Period 10 10 462 10.950 11.464 12.006 12578 13.181 14 497 15.93717 549 19.337 21,321 23.521 25.959 Period 11 11 567 12.169 12.808 13.486 14 207 14.972 16.645 18.631 20.656 23.045 25.733 28.755 32.150 Period 12 12.683 13.412 14 192 15.026 15.917 16.870 18.977 21 384 24 133 27 271 30.850 34931 39,581 Period 13 13.809 14.680 15.618 16.627 17.713 18.882 21.495 24,523 28.029 32.089 36.786 42.219 48.497 period 14 14.94715.97417 086 18.292 19.599 21.015 24 215 27 975 32.393 37581 43,672 50.818 59.196 Period 15 16.097 17.293 18.599 20 024 21.579 23.276 27 152 31.772 37 280 43.842 51.880 60.965 72 035 Period 20 22.019 24 297 26.870 29.778 33.066 36.786 45.76257 27572 052 91.025 115.380 146.628 188.698 Period 25 28 243 32.030 | 36.459 41.646 47.727 54.865 73.106 98.347 133.334 181.871 249 214 342 603 471,981 Period 30 34.785 40.558 47.57556.086 66.43979.058 113.283 164.494 241 333 356.787 530.312 790.948 1.181.882 Period 40 48.886 | 60.40275 401 96.026 120.800 154.762 259.067 442.593 767 0911,342.0252,360.757 4,163.2137.343.858 Future Value of $1 5fT Periods Period 1 Period 2 Period 3 Period 4 Period 5 1% 1.010 1.020 1.030 1.041 1.051 2% 1.020 1.040 1,061 1.082 1.104 3% 1.030 1.061 1.093 1.126 1.159 4% 1.040 1.082 1.125 1.170 1217 5928 1.050 1.103 1.158 1.216 1.276 net pres 1.062 1,072 1083 1,094 1.105 1.126 1.149 1.172 1.195 1.219 1.194 1.230 1.267 1 305 1.344 1.265 1.316 1.369 1.340 1.407 1.477 1.551 1.629 1.423 6% 8% 10% 12% 14% 16% 18% 20% 1.060 1.080 1.100 1.120 1.140 1.160 1.180 1 200 1.124 1.166 1210 1.254 1.300 1.346 1.392 1.440 1.191 1.260 1.331 1.405 1.482 1.561 1643 1.728 1.262 1.360 1.464 1.574 1689 1.811 1.939 2074 1338 1.469 1.611 1.762 1.925 2100 2288 2.488 1419 1.587 1.772 1974 2 195 2436 2.700 2986 1.504 1714 1.949 2 211 2502 2.826 3.185 3.583 1.594 1.851 2144 2476 2853 3.278 3.759 4300 1.689 1.999 2358 2.773 3.252 3.803 4.435 5.160 1.791 2.159 2.594 3.106 3.707 4411 5234 6.192 1.898 2332 2.853 3.479 4226 5.117 6.176 7.430 2012 2518 3.138 3.896 4.818 5.938 7288 8 910 2.133 2720 3462 4.363 5.492 6.888 8.599 10.699 2.261 2.937 3.797 4887 6.261 7.988 10.147 12 839 2397 3.172 4.177 5.474 7.138 9266 11.974 15.407 3.207 4.661 6.727 9.646 13.743 19.461 27393 38.338 4.292 6.848 10.835 17 000 26.462 40 874 62.669 95 396 5.743 10.063 17 449 29 960 50 950 85 850 143.371 237376 10 285 21.725 45 259 93.051 188,884378.721 750.378 1,469.772 Period 6 Period 7 Period 8 Period 9 Period 10 Period 11 Period 12 Period 13 Period 14 Period 15 Period 20 Period 25 Period 30 Period 40 1.480 1.116 1.127 1.138 1.149 1.161 1 243 1.268 1.294 1.319 1.346 1384 1.426 1.469 1,513 1.558 1.539 1.601 1.665 1.732 1.801 1.710 1.796 1.886 1.980 2079 1.220 1282 1 348 1489 1.486 1.641 1 811 2208 1.806 2094 2427 3.262 2. 191 2666 3.243 4.801 2653 3.386 4322 7040