10 of 19 (2 complete) H ark Lodge could use capital budgeting to decide whether the $11,500,000 Spring Park Lodge expa managers developed the following estimates concerning the expansion: mates.) traight-line depreciation method and expects the lodge expansion to have no residual value at the age annual net cash inflow of $2,841,579. The NPV of the expansion is expected to be $684,691. sent Value of $1 table.) (Click the icon to view the Present Value of Ordinary A ves A Data Table the 117 skiers Number of additional skiers per day Average number of days per year that weather conditions allow skiing at Root 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 149 days 7 years $ 242 79 11,500,000 14% Print Done ) and then click Check Answer Clear All Chec NUIUIULU Sa Score: 0 of 1 pt 10 of 19 (2 complete) HW Score: 10.53%, 2 of 19 526-13 (similar to) Question Help Consider how Root Valley Spring Park Lodge could use capital budgeting to decide whether the $11,500,000 Spring Park Lodge expansion would be a good investment. Assume Root Valley's managers developed the following estimates concerning the expansion: (Click the icon to view the estimates.) Assume that Root Valley uses the straight-line depreciation method and expects the lodge expansion to have no residual value at the end of its seven-year life. The project is expected to have an average annual net cash inflow of $2,841,579. The NPV of the expansion is expected to be $684,691. (Click the icon to view the Present Value of $1 table.) Click the icon to view the Present Value of Ordinary Annuity of $1 table.) What is the project's IRR? Is the investment attractive? Why or why not? The internal rate of return (IRR) of the expansion is Click to select your answer(s) and then click Check Answer Clear All Check Answer part remaining