Assume that Flint Valley's managers developed the following estimates concerning a planned expansion to its River Park Lodge (all numbers assumed): 117 164 236 Number of additional skiers per day....... Average number of days per year that weather conditions allow.skiing.at. Flint. Valley.............. Useful life.of.expansion (in.years)............ Average cash.spent.by. each skier.per,day ............ $ Average variable cost of serving each.skier per day.... $ 135 Cost of expansion .... ...... $ 8,000,000 Discount.rate 12% Assume that Flint 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 eight-year life. It has already calculated the average annual net cash inflow per year to be $1,937,988. Consider how Flint Valley, a popular ski resort, could use capital budgeting to decide whether the $8 million 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 annuity factor table.) (Click the icon to view the present value factor table.) (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 $ Is the investment attractive? Why? The expansion is project because its NPV is Requirement 2. Assume the expansion has no residual value. What is the project's NPV? Is the investment still attractive? Why or why not? Calculate the project's NPV. (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 $ Is the investment attractive? Why? Without a residual value, the expansion because of the project's NPV