1 Reference Reference Present Valus of $1 Present Value of Ordinary Annuity of $1 Periods | 1% | 2% | 3% | 4% 5% 6% | 7% 8% | 9% | 10% | 12% | 14% | 15% 16% | 13% | 20% Penods | 1% | 2% | 3% | 4% 5% 14% 7% | 8% | 9% | 10% | 12% 14% 15% | 16% | 18% 20% 1 C90 098 071 0S62 0S209430535 0.26 C.917 0.93 0833O8770870 0820.847 0.833 2 0.980 0.981 09430925 0907 D890 0.873 0.B57C.B42 082 0797 0789 0.758 0.7430.718 0.694 3 | 0971 | 0942 0.915 | 0889 0884 0840 | 0.816 | 0.794 | C.772 | 0.751 | a712 | 0675 | 0668 0.641 | 0.609 | 0.579 40.951 0.92 0888 0855 0823 0.792 0.T63 0.73C.7080.630630592 0572 0552 0.516 0.482 5 | C.951 | 0906 | 0.263 | 0822 0.784 n.747 | 0.213 | 0.581 | C.650 | 0.621 | 0.567 | 0.519 | 0497 0.476 | 437 | A02 10.942 | 0.888|0.8371 0790 0746 0.705 | 0.666 0.6301 C.5961 0.5641 0.5071 0.45810432 D.410| 0.370|0.335 7 0.933 | 0.271 | 0.213 0780 0.211 .665 | 0.623 0.583 C.547 0.513 | a452 | 0400 | 0378 0.364 | 0.314 | 0.279 B 0.923 | 0.853 | 0.789 | 0731 0.677 0.627 | 0.582 0.540 | C.502 | 0.467 | 0.404 | 0.351 | 0.327 0.305 | 0.266 | 0.233 9 C.914 083 0763 0.703 0845 0.592 0.544 0.500 C.40 0424 0.381 0.308 028 0.263 0.225 0.194 10 2.905 | 0820 | 0744 | 0676 0614 0.568 | 0.508 0463 | CAZ2 | 0.396 | 0.322 | 0279 | 0247 0227 | 0.191 | 0.162 1 | C.990 | 0.95 0971 | 0962 .962 | 0.943 0.936 | 0926 | 0917 | 0909 | 0893 0877 0.870 | .862 | 0.847 0.833 2 1.97O 1.9421.13 1886 1859 1.33 1.B1.7831759 173 1690 1647 1626 160515661.528 3 2.941 2.884 28292.775 2.723 2.873 2.624 2.577 25312487 2402 2322 2283 224 2.174 2.106 4 | 3.902 | 3.808 | 3.717 | 3630 3.546 | 3.465 3.387 | 3312 | 3240 | 3170 | 3033 2.914 2.855 | 2798 2.6 u 2.539 5 4.B53 4.713 4580 4452 4.329 4.212 4.100 3.9933890 3791 3605 3433 3.352 3273.127 2.991 6 S.796 5.601 5417 5242 5.0764.74.767 4.623 4.485 4355 4.111 388 3.784 3.685 3.488 3.326 76.728 8.472 6.230 8.002 5.788 5.58 5.385.2085.03348884584 4288 4.160 4039 3.812 3.806 8 6 7.325 70206733 64636.210 5971 5747 5535 5335 4 463 4487 4344 4078 383 9 8.55 8.162 7.783 7435 7.108 6.502 6.515 6.24759955.759532B 4946 4.772 4607 4.303 4.031 10 | 9.471 | .983 | 2.530 | 0.111 | 7.722 | 7.36 7.024 | 6.710 | 6418 | 6145 | 5650 5216 5.019 | 4.833 | 4484 4.192 1110.30 9787 92538760 30677 9 1396805 4955938 5453 523 5029 46 4.327 12 11255 10.575 9.954 9385 B863 8.384 7.9137.53T.16168146.1 5660 5.121 5.197 4.793 4.439 13 | 12.1341 11.340110.635 9986 9.384|Bi53 0.358 7.904| 7487| 7103| 6424 5A42 5.503| 5.342| 4.910 4.533 14 13.004 .106 11.236 10563 9.8999.23 8.74 8.244T 785 367 662B 6002 5.7245.4685.008 4.611 15 13.8ES 12.B49138 11.118 10380 9.712 9.1088559 80817608 6.11 6.142 5847 5575 5.092 4.675 16 14.T18 13.58 12.551 11.652 10838 10.106 9.4478.858313T8246974 6265 5864 5.669 5.162 4.730 17 | 15.562| 14.292| 13.166| 12.86 11.274| 10.477 9.763|9.122|&544|8022|120 6373 047| 5.749 5.222 4.77 18 16.3 14.5 13.754 12659 11.60 1028 10.0$32 875 8201 720 6467 6.128 5818 5.273 4.812 19 | 17.2261 15.678| 14.324|13.134 12C85| 11 15B 10.336 9.604|895018365| 73 6.550 B.198| 5.877| 5.316 4.844 20 | 18.04| 16.351| 14.877|13.590 12462|11 470 10.564|9818|9129| 8614|7469 6623 269|5929|5.363 4.870 21 18.857 17.011 15.415 14.029 12821 11.78 10.838 10.017 9292 B6497582 .887 B.312 5.973 5.384 4.891 22 1986! 17.658|15.937|14 451 13163| 12.042 11.061|10.201| 9442|8 772|7645 6743 359| 6,011 | 5410 4sce 23 20456 18.292 16.444 14.857 13.189 12.303 11272 10.371 9580 B8837.71B 6.72 6.399 6.044 5.432 4.925 24 | 21.243 | 18.914 | 16.936| 15247 13.799 | 12.560 11.489 | 10.529| 9.707 | 8985 | 7784 6A35 434 | 6,073 | 5.451 4.937 25 122.023| 19.523 | 17.413 15622 1409L 12.783 11.654|10.575 | 9823|9077|7843 5.873 5.464|6097| 5.467 4.948 11 C.86 0804 0722 0650 0585 0527 0.475 0.42 C.3880350 0287 02370215 0.15 0.162 0.136 12 .857 07B3 0.701 0625 0.557 0.497 0444 0.397 C.358 0.3190257 02080.187 0.16810.112 13 0B9 038 60 030 0469 0415 0.30 C.32020 02290182 0.163 0.145 0.116 0.03 14 0.870 0753 0661 0577 0.505 012 0.388 0.310 C.2990.263 0.205 01600.11 0.1250.0990.078 15 .B61 | 0.243 | 0.242 | 0555 0481 1.417 | 0.362 | 0.316 | 0.275 | 0.239 | 0.183 | 0.140 | 0.123 0.108 | .084 | .es 16 C.853 0728 0.623 0534 0.458 0.394 0.339 0.292 C.2520.218016301230.107 D.093 0.071 0.054 17 | 0.844 | 0714 | 0BD5 | 0513 0436 .371 | 0.317 | 0.270 | C.231 | 0.198 | 0.146 | 0108 | 0083 0C80 | | 0.345 18 0.836 0.700 0587 0494 0416 0.350 0296 0.250C.2120.1B00130 0.095 0081 0.C69 0.061 0.038 19 | 0.828 | 0.6B6 | 0.570 | 0475 0.396 n.301 | 0.277 | 0.232 | 194 | 0.164 | 0.116 | 0083 0070 0.000 0.043 | 0.031 20 0.820 0673 0554 0455 030312 0.258 0.215C.178 0.149 0104 0073 61 0061 00.326 21 0811 | 0.280 | 0.538 | 0439 0.359 .294 | 0.242 0.199 C.164 | 0.135 | 0.093 | 0.064 0.063 0044 | .001 | 0.022 22 C.83 0647 0522 0422 03 02780226 0.184 C.150 0.123 0083 0055 0046 0038 0.026 0.018 23 0.795 0834 0507 040B 0328 0.262 0.211 0.170 C.133 0112 0.074 00490040 0.C33 0.2 0.015 24 C,788 062 049230310 02470.19 0.15 C.12060043 0035 0 028 0019 0.013 25 0.7 0610 0478 0375 0295 0233 0.184 0.146 01160.092 0059 0038 0030 0.024 0.016 0.010 28 0.72 0598 0464 0381 0281 0.220 0.172 0.135.106 0.0B4 0053 00330028 0.00.014 0.009 27 | ,764 | 0.596 | 0450 | 0347 0.288 0.207 | 0.161 | 0.1: | C098 | 0.076 | 0.047 | 0029 | 0023 0.018 | 0.011 | 0.007 28 0.757 0574 0437 0333 0255 0.196 0.150 0.116 C.0900.069 0.02 00250020 0.060.010 0.006 29 | 0.749 | 0.563 | 0.424 | 0.321 0.243 .185 | 0.14. | 0.107 | C.082 | 0.063 | 0.037 | 0.022 | 0.017 0.014 | .00| 0.006 30 | C.742 | 0.552 0.412 | 0308 0.231 0.174 | 0.131 | 0.099 .075 | 0.057 | 0.033 | 0020 | 0015 0012 | 0.007 | 0.004 40 .672 | 0453 | 0.307 | 0208 0.142 .0&T | 0.067 | 0.046 | C.032 | 0.022 | 0011 | 0005 | 0.004 0.003 | 001 | .00 50 0.6 0372 0.228 0.141 0C87 0.64 0.04 0.021 C.013 0.009 0.003 00010001 0.C01 26 22.T96 20.121 17.877 15983 14375 13.003 11826 10.810 99299.1617896 6906 6.491 6.118 5.480 4.956 27 | 23.560| 20.707| 18.327|16330 14643|13.211 11.907| 10.935| 10.027|923717943 sa5 .514| 0.136 5492 4.964 28 | 24.316 | 21.281 | 18.764 | 15663 14898 | 13.406 121 , | 11.061 | 10 116 | 9307 | 984 6961 6534 | 6.152 | 5.502 4.970 29 25.0E 21.B44 19.183 18984 15.141 13.591 12.278 11.158 10.198 9370 B022 .983 B558.1685.510 4.975 30 | 25.808 | 22.396 | 19.600| 17292 15372 | 13.765 12.409 | 11 258 | 10274 | 9427 | 8065 7.003 566 | 6.177 | 5.517 4.979 40 32.835 27.355 23.115 19.793 17.159 15.048 13.332 11.925 10.7579.779824 7.105 8.642 8233 5.548 .997 50 39.196 31.424 25.730 21.482 18 256 15.762 13.801 12.233 10.952 9815830 7.133 6.661 6246 5.55 4.969 Print Done Print Dona Consider how Jones Valley Spring Park Lodge could use capital budgeting to decide whether the $12,500,000 Spring Park Lodge expansion would be a good investment. Assume Jones Valley's managers developed the following estimates concerning the expansion: El (Click the icon to view the estimates.) (Click the icon to view Present Value of $1 table.) (Click the icon to view Present Value of Ordinary Annuity of $1 table.) What is the project's NPV (round to nearest dollar)? Is the investment attractive? Why or why not? (Click the icon to view additional information.) Calculate the net present value of the expansion. (Enter the factor to three decimal places, .. Round your calculations to the nearest whole dollar.) Net Cash Annuity PV Factor PV Factor Present Inflow Value Years 1-10 0 (i-8%, n-10) (F8%, n 10) ue Data Table Present value of annuity Initial investment Net present value of expansion Number of additional skiers per day Average number of days per year that weather conditions 115 skiers When the residual value is zero. the expansion is project because its NPV is 142 days 10 years 237 87 12,500,000 8% allow skiing at Jones Valley Useful life of expansion (in years) Average cash spent by each skier per day Average variable cost of serving each skier per day Cost of expansion Discount rate More Info Assume that Jones Valley uses the straight-line depreciation method and expects the lodge expansion to have no residual value at the end of its ten-year life. The project's average annual net cash inflow per year is expected to be $2,449,500 Print Done PrintDone