all requirements

Reference Reference Valley, a popular ski resort, could use capital budgeting to decide whether the $10 million River Park Lodge to view the Data table Assume that Bear Valley's managers developed the following estimates concerning a planned expansion to its River Park Lodge (all numbers assumed): Number of additional skiers per day 124 Average number of days per year that weather conditions allow skiing at Bear Valley 163 Useful life of expansion (in years). 9 Average cash spent by each skier per day. 241 Average variable cost of serving each skier per day .\$ 132 Cost of expansion. $10,000,000 Discount rate ........................ 14% Assume that Bear Valley uses the straight-line depreciation method and expects the lodge expansion to have a residual value of $950,000 at the end of its nine-year life. It has already calculated the average annual net cash inflow per year to be $2,203,108. Print Done Consider how Bear Valley, a popular ski resort, could use capitat budgeting to decide whether the 510 millon River Park Lodge expansion would be a good investment (Click the icon to view the expansion estimates.) (Click the icon to view the present value annuly factor table.) (Cick the icon to vew the present value factor table) (Click the icon to view the future value annuity factor table) (Click the icon to vew the Mare value factor tablo.) Read the requitements Requirement 1. What is the projecrs NPV7 is the livestment attractive? Why or why nor? Net present value of expansian Reference would be a good invest pegative not preeent v 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