5 Consider how Hope Valley, a popular ski resort, could use capital budgeting to decide whether the $8 million Stream 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.) (Click the icon to view the future value annuity factor table) Read the requirements (Click the icon to view the present value factor table.) (Click the icon to view the future value factor table) Data table Assume that Hope Valley's managers developed the following estimates concerning a planned expansion to its Stream Park Lodge (all numbers assumed): Number of additional skiers per day.. 123 Average number of days per year that weather conditions allow skiing at Hope Valley..... Useful life of expansion (in years)... Average cash spent by each skier per day........ 157 9 6 237 Average variable cost of serving each skier per day. S 144 Cost of expansion. Discount rate..... Assume that Hope Valley uses the straight-line depreciation method and expects the lodge expansion to have a residual value of $800,000 at the end of its nine-year life. It has already calculated the average annual net cash inflow per year to be $1,795,923 $ 8,000,000 14% Print Done I Requirements 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? Print Done Present Value of Annuity of $1 Reference Period 4 Period 5 Periods 15 2% 3% 4 5% Period 1 0.000 0.000 071 0962 Period 2 1970 1942 1913 10 Period 3 25 10% 12% 14% 0952 043 0026 0909 0890 077 1200 1830 1783 1736 1000 1647 10% 18% 0062 0847 0800 Periods 1.606 1000 1508 2541 2804 2829 2775 Period 4 Period 5 2723 2473 2577 2487 2402 2.322 224 2.174 3902 3808 3717 3630 3546 3465 3312 3170 3037 2914 2700 2600 259 4053 4713 460 4452 4329 4212 3900 3.791 3.605 3433 3274 3127 2.106 Period 2 Period 3 2991 Period 3326 3606 Period 4300 4001 Neriod 4.192 4.327 6796 5601 6417 5242 6076 4917 4823 4356 4.111 309 3.005 3406 Period? 6728 6472 6230 6002 5736 5582 5206 4008 4564 4200 4000 3812 Period 7652 7329 7020 6730 643 4210 5747 5335 4068 40 4344 AUT Periods 566 182 7706 7436 7100 6800 247 5759 5328 45454007 Period 18 9471 563 8.630 81117722 7360 8710 6145 6600 5216 4033 AM Period 11 10 368 9767 9253 760 8306 717 7139 6495 533 5453 5029 40% Period 12 11.256 10 575 9954 0305 836) 304 753 214 14 5660 187 A700 4430 Period 13 12.134 11.343 10835 9906 394 3 7904 7103 6424 5542 53424910 4533 Period 14 13 004 12.106 11.296 10 563 899 9295 244 7367 6425 6000 400000 4611 Period 15 13 65 12345 11 530 11110 10 300 212 569 7606 811 142 557 5000 4675 Period 20 18 00016351 14877 13 6001248211470 018 514 rats 6823 695 5363 | 480 Present Value of $1 1% 2% 3% 45 5% 0% 1% 10% 12% 14% 16% 18% 20% 0.990 0980091 092 0952 0943 0526 0909 080 0877 0.062 0547 0830 0900 0501 0943 0905 0907 0390 0357 0825 0797 0.769 0743 0718004 0971 0942 0915 0589 0864 0340 0794 0751 0712 0675 0.041 0609 0579 0901 0024 0808 0855 0823 0792 0735 0683 0636 0502 0662 0518 0482 09610006 0363 0822 0784 0747 0481 0621 0567 0510 0476 0437 0402 0542 0808 0037 0.790 0746 0706 0.630 0164 0.50 0.456 0410 0370 0.335 Period 7 0933 0875 0813 0760 711 0005 0883 0513 0452 0400 0354 0.314 9279 0923 0853 0709 0731 0677 0627 0540 0457 0404 0351 0305 0208 0233 eriod 9 0914 0437 0766 0703 0645 0582 0.500 0424 0361 0308 0253 0225 0194 Period 18 0905 0320 0744 0675 0614 0560 0463 0300 0322 0270 0227 0191 0162 Period 11 0806 0304 0722 0660 0585 0527 0429 0050 0267 0237 0196 0182 0.136 Period 12 0087 0780 701 0425 0567 0497 0307 0315 0257 0208 0168 0137 0112 Period 13 879 0773 0681 0601 0530 0.40 0368 0290 0229 0182 0.145 0116 000 Period 14 0870 0758 0661 0577 0506 0442 0340 0263 0208 0160 0125 0.099 0.07 Period 15 0001 0743 0642 0555 0431 0417 0315 0230 0183 0140 010 0004 0.066 Nriod 20 08200073 0004 0406 0377 0312 0215 0149 0 104 0073 0051 00370026- Print Dong Reference Period 2 Period Period 4 Period 5 Period 6 5755 5601 5417 6242 5076 4917 4623 4356 411 2800 2685 3498 3336 Period 75728 6472 6230 6002 5.76 6 580 6206 4008 4504 42 4039 3812 3606 Period 7862 73267000 6733 6453 6210 5747 5336 4905 460 4344 4075 1837 Period 566 182 7706 7435 7100 6302 6247 6789 5328 4948 4.007 4303 4001 Period 10 9471 30 111 7722 7300 710 145 5650 5218 483 444 4.10 Period 11 10.308 5767 9253 8750 306 77 7130 640 6908 453 5009 409 4.327 Period 12 11.255 10.675 9054 9305 8863 364 7530 681467945660 517 475 4.49 Period 13 12134 11348 10 635 9906 34 853 7304 7103 6424 5342 5342 4950 4.533 Period 14 13 004 12 106 11 250 0 560 589992963447367 6428 002 468 5000 401 Period 15 13 36 120 110381 11 15380 712 3660 700 811 652 675 502 4475 Period 20 12 24 18351 14877 12.500 12 462 11 470 1514 7400 662) 5505 35 4479 Period 25 22.023 18 523 17413 15 622 14 12 783 10 670 077 70 6873 600 a Prod 30 25.08 22:20 10.000 72 15372 3700 11208427 606070036177 Period 432 38 27.366 23 (56 790 17 15 15 046 11.525 779 244 7106 6330 1970 194 1913 1805 1859 1833 173 1796 1800 1647 1605 1560 1520 2941 284 2829 2.775 2723 2473 2577 2487 2402 2302 2246 2174 2.100 3902 3.000 3717 3650 3546 3465 3312 3170 3007 2914 278 2000 2539 4053 4713 4580 4452 4329 4212 3900 3791 380 3403 3274 3127 2991 $517 4379 Period 2 Period 3 Period 4 Periods Periods Period 7 Period 8 0500 0961 0943 0105 0907 0850 0857 0826 079 070 0743 0713 0694 0971 0942 0915 0800 0854 0.840 0294 0751 0712 0675 0641 0.609 0579 0.001 0024 0888 0856 0823 0732 0736 0.683 0630 0562 0562 0516 0.482 0161 0905 0253 0822 0784 0747 0601 0621 0567 05190476 0.437 0.402 0542 008 0837 0780 0746 0705 0530 0564 0507 0456 0410 0370 0.335 0933 0871 9813 6700 0711 0665 053 0513 0452 0400 0354 0314 0.279 0923 0853 799 0731 0477 06270543 0467 0404 0.351 0305 0.266 0.233 dod 9 0914 0837 0700 703 0645 0500 05000424 0201 0300 0263 0.225 0.154 Period 10 0305 0320 0744 0676 0654 058 0463 0306 0322 0270 0227 0101 0142 Neriod 11 0356 0004 0722 0850 0585 0527 0429 0350 0207 9237 0196 02 135 Period 12 000788 0701 0425 0657 048 0397 0319 0257 0200 0168 0137 0112 Period 13 0879 0773 0681 0601 0530045 0368 0290 0229 0132 0145 116 0000 eriod 14 0820 0258 0661 0677 0506 0442 0340 0263 6206 0100 0125 0000 078 Jeriod 15 301 6743 0842 0586 0401 0417 0315 0230 0183 0140 0108 0.064 0066 Period 200020 0673 054 0436 0377 0312 0219 0140 0104 005 0051 007 002 ediod 25 0700 061 0478 0325 0295 0233 0140 0000 0000 0038 0004 0018 0010 erind 30 0742 0562 0412 0338 0231 0174 009 0067 0033 0020 0012 0.007 0.004 Period 40 06720453 9307 0208 0149 0097 048 009 0011 0006 0.0000010001 $1 Future Value of Analty of $1 15 29 3% 201 507 100 1000 10.30 1000 1040 1001 1000 1001 1000 1041 102 1126 10 1104 1350 1000 108 5% es 1040060 102 1 1125 1.170 1210 1217 1276 1340 1. 1872 1230 120 1004 1306 1219 134 1450 M the 120 112 120 TAN NO 1294 M 134 1319 130 1400 1811 1419 1547 1772 1300 2100 2438 2700 1407 1004 1714 13 2211 2502 233 318 1477 1504 1911 2144 24 2M 02/17 561 10238 2773 3312 1429 1701 2104 21M 310 377 4411 1750 2332 28 309 1801 1796 2012 2518 3136 3306 130 2133 2730 342433 1300 221 2337 10% 12% 54% 14% 12% 1000 1.100 1120 1.340 1100 1100 1210 1254) 1300 1345 1260 13 1406 1252 1300 1464 189 1960 20% 1180 1200 eriods 15 1000 1302 1440 1402 1561 1800 1843 1729 1311 1999 2014 2100 2.20 ods 101 5204 5300 2 2% 25 2% 50% 1000 1000 1000 1000 1000 1000 2010 2000 2000 2040 2050 2000 2000 3000 3000 30013322 3353 314 334 4.000 4122 4206 416 5526 12% 14% 10% 18% 20% 1000 1000 1.000 1000 1000 1000 2100 2120 2140 20 2.100 2200 3310 3374 3443 3306 4379 450 4779 4321 5006 215 0106 6010 6377 7154 TA 200 d 12 6308 468 663302 7330 7716 800 3077 040 3 7214 ZAM MAN 1250 12998 4300 8 214 545 98 1083114 12.300 13.333 14240 18327 15400 4436 7510159 10 5631102711491 124M 15429 14.778 16005 PA 20.790 5234 12 10337 21321 23629 25.30 4236 5117 48186536 728 7430 8916 412 600 110 1348 13 1801 20 1220400 1406 2101 247 237 332 437 474 41 70 286 an 6777 13 743 | 1941 27 300 12830 15 40 38300- od 14 od 15 11567 1219912808 13 400 14.207 14 9721845 18521 20 556 12 68313 412 14182 15 26 15917 10 977 2134 24133 2727 1380 14880 15818 16 627 17.73 822245332809320 18.007 17295.000 20.024 21879 22 20220102429/1267026 77813350878 24045 28.755 32160 50800 34001 36.7M 42209 222772 37.200 443 4742 67275 72082100 43872 50 31.000 100 806 72 11534 02 1000 1040 1061 1030 1001 103 1001 1002 1126 1170 1051 1104 1.100 1257 1125 47 1000 1172 120 1002 1126 1114 1256 14/2 1149 1230 134 1309 1.00 1396 1306 1124 116 1210 1254 1250 1301 1405 1216 132 1360 1454 1276 13 14 1340 1419 1407 1504 sant 1421 1561 1300 1346 1440 1482 1M1 1643 1574 1600 1811 1900 176 1925 2100 220 2010 2000 200 2040 2000 2014 od 4 4000 4522 240 od S 2050 2000 2000 2100 3000 30013122 3.153 3245 3310 4104 4245 4310 437 4506 4041 51011 5204 309 541 5067 6106 2120 4779 1307 1772 1974 2106 2436 2200 2000 110 129 1344 11 412 112 1343 1384 1258 1425 1294 1480 129 1791 1509 1801 100 203106 1714 1900 2211 2500 2826 318 1851 244 247 1999 2300 2m 2100 3583 3278 379 4300 1252 3803 4438 8160 3707 4411 $2M 190 1340 13% 150 134 1710 138 2332 2003 34 4226 5117 1790 2012 2618 313 336 4818 233 3720 3452 4363 1900 2201 2937 3757 1901 2079 3172 417 1430 7200 8509 7081147 184 29 425 1.800 21 1282 641 204 182427 220322 4.901 2013 3307 AMY 6727 46 12.70 481 27303 3338 4202 10817000240740009300 4322 1743 106317425 900 50 60 0.00 14332] aram 152 630 6603 6302 6975 7306 7715 15 7254 7434 702 1206 8142 393 5487 10000 200 5400 5214 9549 5713637 11436 12300 200710 15510583 1127 11.491 124 13 679 14 776 10.462 15950 11 404 12:006 12379 13181 44 1557 1754910337 1547 123 120 1243 14207 14 572 1045 18 21 20 065 1280313412 14 100 15 026 15 917 16870 977 21.34 24 130 od 13809 1483015413 18.627 17.713 12 21 406 24 103 2002 200 od 14 14 547 15 74 17 006 18.202190 2105 24255 27 97 32.390 od 150717293 1859 30 004 21 5/9 23276 272 31772 37 200 442 292201924 27 27 277 3005670648762 57275 720621025 od 252824332000384910447-727 54 305 306 34213133487 30347840508 4775 56 047068283 16.4241300 72 0472 61000 00066 240214 34803 471981 30312 04 1213 7343 536 10730 13200 2140 2100 3440 3600 3540 3572 4901 5006 5215 5368 6650 6877 754 742 8977 11414 12.142 2150 2200 0930 12.916 14240 15307 1400 16 das 17519 130 20799 21301 23521 29 20 048 28733 28.156 32550 od 12 13 27271 3000 34901 001 4221 44 1 00130 22000 Pret Done