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5018(7 comp Consider how Preston Valley Brook Park Lodge could use capital budgeting to decide whether the $13,000,000 Brook Park Lodge expansion would be a

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5018(7 comp Consider how Preston Valley Brook Park Lodge could use capital budgeting to decide whether the $13,000,000 Brook Park Lodge expansion would be a good investment. Assume Preston Valley's managers developed the following estimates concerning the expansion (Click the icon to view the estimates.) (Click the icon to view additional information.) What is net present value of the expansion (Enter the factor to three decimal places, XXOXX Round your Round your calulations to the ne Net Cash Inflow Annuity PV Factor (ie8%, n-10) PV Factor Present Years 0.6% nr10) Value 1-10 Present value of annuily 0 Initial investment Net present value of expansion When the residual value is zero, the expansion is ] project bocause its NPV is: T -- Data Table Number of additional skiers per day 117 skiers Avorage number of days per year that weather conditions allow skiing at Preston Valley Useful life of expansion (in years) Average cash spent by each skier per day Average variable cost of Cost of expansion Discount rate 149 days 10 years serving each skier per day Enter any number in the e 75 13,000,000 esc F6 2 3 4 6

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