1. What is the project's NPV? Is the investment attractive? Why or why not? 2. Assume the expansion has no residual value. What is the project's NPV? Is the investment still attractive? Why or why not? Future Value of $1 Periods 3% 20% 1% 1.010 1.020 1.030 1.041 1.051 20/ 2% 1.020 1.040 1.061 1.082 1.104 1.030 1.061 1.093 1.126 1.159 4% 1.040 1.082 1.125 1.170 1.217 5% 1.050 1.103 1.158 1.216 1.276 6% 6% 1.060 1.124 1.191 1.262 1.338 8% 1.080 1.166 1.260 1.360 1.469 10% 1.100 1.210 1.331 1.464 1.611 12% 1.120 1.254 1.405 1.574 1.762 14% 1.140 1.300 1.482 1.689 1.925 16% 1.160 1.346 1.561 1.811 18% 1.180 1.392 1.643 1.939 2.288 1.200 1.440 1.728 2.074 2.488 2.100 1.062 1.072 1.083 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 1.423 1.480 1.340 1.407 1.477 1.551 1.629 1.419 1.504 1.594 1.689 1.791 1.772 1.949 2.144 2.358 2.594 1.974 2.211 2.476 2.773 3.106 2.195 2.502 2.853 3.252 3.707 2.436 2.826 3.278 3.803 4.411 1.116 1.127 1.138 1.149 1.161 1.243 1.268 1.294 1.319 1.346 1.384 1.426 1.469 1.539 1.601 1.665 1.732 1.801 1.710 1.796 1.886 1.980 2.079 1.898 2.012 2.133 2.261 2.397 1.587 1.714 1.851 1.999 2.159 2.332 2.518 2.720 2.937 3.172 4.661 6.848 10.063 21.725 2.853 3.138 3.452 3.797 3.479 3.896 4.363 4.887 5.474 4.226 4.818 5.492 6.261 7.138 5.117 5.936 6.886 7.988 9.266 2.700 2.986 3.185 3.583 3.759 4.300 4.435 5.160 5.234 6.192 6.176 7.430 7.288 8.916 8.599 10.699 10.147 12.839 11.974 15.407 27.393 38.338 62.669 95.396 143.371 237.376 750.378 | 1,469.772 1.513 1.558 4.177 1.220 1.282 1.348 1.489 1.486 1.641 1.811 2.208 1.806 2.094 2.427 3.262 2.191 2.666 3.243 4.801 2.653 3.386 4.322 7.040 3.207 4.292 5.743 10.286 6.727 10.835 17.449 45.259 9.646 17.000 29.960 93.051 13.743 26.462 50.950 188.884 19.461 40.874 85.850 378.721 Present Value of $1 | Periods | % 2% 3% 4% 5% 6% 8% | 10% | 12% | 14% | 16% | 18% | 20%, 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 0.980 | 0.961 | 0.943 | 0.925 | 0.907 10.890 | 0.857 10.826 10.797 | 0.769 10.743 | 0.718 | 0.694 0.971 0.942 0.915 0.889 0.864 0.840 0.794 0.751 0.712 0.675 10.641 10.609 10.579 0.961 10.924 0.888 0.855 10.823 10.792 10.735 10.683 0.636 10.592 10.552 10.516 0.482 0.951 0.906 0.863 | 0.822 ] 0.784 | 0.747 | 0.681 | 0.621 0.567 0.519 10.476 0.437 | 0.402 0.942 0.888 0.837 0.790 0.746 0.705 0.630 0.564 0.507 0.456 0.410 0.370 10.335 0.933 0.871 0.813 0.760 0.711 0.665 0.583 0.513 0.452 0.400 0.354 0.314 0.279 0.923 0.853 0.789 0.731 10.677 10.627 10.540 0.467 0.404 0.351 0.305 10.266 10.233 0.914 10.837 0.766 0.7031 10.645 10.592 0.500 10.424 10.361 0.308 10.263 0.225 0.194 0.905 10.820 | 0.744 10.676 10.614 10.558 10.463 | 0.386 10.322 10.270 | 0.227 10.191 10.162 0.896 0.804 0.722 0.650 0.585 0.527 0.429 0.350 10.287 0.237 0.195 0.162 0.135 0.887 0.788 0.701 0.625 0.557 0.497 0.397 0.319 0.257 0.208 0.168 0.137 0.112 0.879 0.773 0.681 0.601 0.530 10.469 0.368 0.290 10.229 0.182 10.145 0.116 0.093 0.870 0.758 0.661 10.577 0.505 0.442 10.340 0.263 10.205 0.160 10.125 0.099 0.078 | 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 0.820 0.673 0.554 0.456 0.377 0.312 0.215 0.149 0.104 0.073 0.051 10.037 0.026 0.780 0.478 10.375 0.295 0.233 0.146 0.092 0.059 10.038 0.024 10.016 0.010 0.742 10.552 10.412 10.308 10.231 0.174 | 10.099 10.057 0.033 0.020 | 10.012 0.007 10.004 | 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 4567890HQBH6 10.610 Future Value of Annuity of $1 Periods 1% 1.000 2.010 3.030 4.060 5.101 2% 1.000 2.020 3.060 4.122 5.204 3% 1.000 2.030 3.091 4.184 5.309 4% 1.000 2.040 3.122 4.246 5.416 5% 1.000 2.050 3.153 4.310 5.526 6% 1.000 2.060 3.184 4.375 5.637 8% 1.000 2.080 3.246 4.506 10% 1.000 2.100 3.310 4.641 6.105 12% 1.000 2.120 3.374 4.779 6.353 14% 1.000 2.140 3.440 4.921 6.610 16% 1.000 2.160 3.506 5.066 6.877 18% 1.000 2.180 3.572 5.215 7.154 20% 1.000 2.200 3.640 5.368 7.442 5.867 6.152 7.214 8.286 9.369 10.462 6.308 7.434 8.583 9.755 10.950 6.468 7.662 8.892 10.159 11.464 6.633 7.898 9.214 10.583 12.006 6.802 8.142 9.549 11.027 12.578 6.975 8.394 9.897 11.491 13.181 7.336 8.923 10.637 12.488 14.487 7.716 9.487 11.436 13.579 15.937 8.115 10.089 12.300 14.776 17.549 8.536 10.730 13.233 16.085 19.337 8.977 11.414 14.240 17.519 21.321 9.442 12.142 15.327 19.086 23.521 9.930 12.916 16.499 20.799 25.959 11.567 12.683 13.809 14.947 16.097 12.169 13.412 14.680 15.974 17.293 12.808 14.192 15.618 17.086 18.599 13.486 15.026 16.627 18.292 20.024 14.207 15.917 17.713 19.599 21.579 14.972 16.870 18.882 21.015 23.276 16.645 18.977 21.495 24.215 27.152 18.531 21.384 24.523 27.975 31.772 20.655 24.133 28.029 32.393 37.280 23.045 27.271 32.089 37.581 43.842 25.733 30.850 36.786 43.672 51.660 28.755 34.931 42.219 50.818 60.965 32.150 39.581 48.497 59.196 72.035 22.019 28.243 34.785 48.886 24.297 32.030 40.568 60.402 26.870 36.459 47.575 75.401 29.778 41.646 56.085 95.026 33.066 47.727 66.439 120.800 36.786 54.865 79.058 154.762 45.762 73.106 113.283 259.057 57.275 98.347 164.494 442.593 72.052 133.334 241.333 767.091 91.025 115.380 146.628 186.688 181.871 249.214 342.603 471.981 356.787 530.312 790.948 1,181.882 1,342.025 2,360.757 4,163.213 7,343.858 Present Value of Annuity of $1 Periods 1% 1 0.990 1.970 2.941 3.902 4.853 2% 0.980 1.942 2.884 3.808 4.713 3% 0.971 1.913 2.829 3.717 4.580 5% 0.952 1.859 2.723 3.546 4.329 6% 0.943 1.833 2.673 3.465 4.212 8% 0.926 1.783 2.577 4% 0.962 1.886 2.775 3.630 4.452 5.242 6.002 6.733 7.435 8.111 10% 0.909 1.736 2.487 3.170 3.791 12% 0.893 1.690 2.402 3.037 3.605 14% 0.877 1.647 2.322 2.914 3.433 16% 0.862 1.605 2.246 2.798 3.274 18% 0.847 1.566 2.174 2.690 3.127 20% 0.833 1.528 2.106 3.312 2.589 3.993 2.991 5.795 6.728 7.652 8.566 9.471 5.601 6.472 7.325 8.162 8.983 5.417 6.230 7.020 7.786 8.530 5.076 5.786 6.463 7.108 7.722 4.917 5.582 6.210 6.802 7.360 4.623 5.206 5.747 6.247 6.710 4.111 4.564 4.968 5.328 5.650 3.889 4.288 4.639 4.946 5.216 3.685 4.039 4.344 4.607 4.833 3.498 3.812 4.078 4.303 4.494 4.355 4.868 5.335 5.759 6.145 6.495 6.814 7.103 7.367 7.606 3.326 3.605 3.837 4.031 4.192 4.327 4.439 4.533 4.611 4.675 5.938 6.194 6.424 10.368 11.255 12.134 13.004 13.865 18.046 22.023 25.808 32.835 9.787 9.253 8.760 8.306 7.887 7.139 10.575 9.954 9.385 8.863 8.384 7.536 11.348 10.635 9.986 9.394 8.853 7.904 12.106 11.296 10.563 9.899 9.295 8.244 12.849 11.938 11.118 10.380 9.712 8.559 16.351 14.877 13.590 12.462 11.470 9.818 19.523 17.413 15.622 14.094 12.783 10.675 22.396 | 19.600 17.292 15.372 | 13.765 | 11.258 27.355 23.115 19.793 17.159 15.046 11.925 5.453 5.660 5.842 6.002 6.142 5.029 5.197 5.342 5.468 5.575 6.628 4.656 4.793 4.910 5.008 5.092 6.811 8.514 9.077 9.427 9.779 7.469 7.843 8.055 8.244 6.623 5.929 6.873 6.097 7.003 6.177 7.105 | 6.233 5.353 5.467 5.517 5.548 4.870 4.948 4.979 4.997 Assume that Flint Valley's managers developed the following estimates concerning a planned expansion to its Waterfall Park Lodge (all numbers assumed): Number of additional skiers per day..... 121 Average number of days per year that weather conditions allow skiing at Flint Valley ......... 163 Useful life of expansion (in years) ................ Average cash spent by each skier per day .......... 243 Average variable cost of serving each skier per day .... $ 132 Cost of expansion .............. $ 9,000,000 14% Assume that Flint Valley uses the straight-line depreciation method and expects the lodge expansion to have a residual value of $900,000 at the end of its nine-year life. It has already calculated the average annual net cash inflow per year to be $2,189,253. Discount rate .............................. Consider how Flint Valley, a popular ski resort, could use capital budgeting to decide whether the $9 million Waterfall Park Lodge expansion would be a good investment. (Click the icon to view the expansion estimates.) (Click the icon to view the present value annuity factor table.) 3 (Click the icon to view the present value factor table.) 2 (Click the icon to view the future value annuity factor table.) (Click the icon to view the future value factor table.) Read the requirements Requirement 1. What is the project's NPV? Is the investment attractive? Why or why not? Calculate the net 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 present value of expansion $