Assume that Flint Valley's managers developed the following estimates concerning a planned expansion to its Waterfall Park Lodge (all numbers assumed): Number of additional skiers per day..... 121 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 .......... $ 243 Average variable cost of serving each skier per day .... $ Cost of expansion ............... $ 9,000,000 Discount rate ................................ 14% Assume that Flint Valley uses the straight-line depreciation method and expects the lodge expansion to have a residual value of $900,000 at the end of its nine-year life. It has already calculated the average annual net cash inflow per year to be $2,189,253. 132 Present Value of Annuity of $1 | Periods) 1% | 2% | 3% | 4% | 5% | 6% | 8% | 10% | 12% | 14% | 16% | 18% | 20%, | 0.990 | 0.980 | 0.97110.962 10.952 10.943 10.926 | 0.909 10.893 | 0.877 10.862 10.847 10.833 1.970 1.942 1.913 1.886 1.859 1.833 1.783 1.736 1.690 1.647 1.605 1.566 1.528 2.941 2.884 2.829 2.775 2.723 2.673 2.577 2.487 2.402 2.322 2.246 2.174 2.106 3.902 3.808 3.717 3.630 3.546 3.465 3.312 3.170 3.037 2.914 2.798 | 2.690 12.589 4.853 4.713 4.580 4.452 4.329 4.212 3.993 3.791 3.605 3.433 3.274 3.127 2.991 5.795 5.601 5.417 5.242 5.076 4.917 4.623 14.355 4.111 3.889 3.685 3.498 3.326 6.728 6.472 6.230 6.002 5.786 5.582 5.206 4.868 4.564 4.288 4.039 3.812 3.605 7.652 7.325 7.020 6.733 6.463 6.210 5.747 5.335 4.968 4.639 4.344 4.078 3.837 8.566 8.162 7.786 7.435 7.108 6.802 6.247 5.759 5.328 4.946 4.607 | 4.303 4.031 9.471 8.983 8.530 8.111 7.722 7.360 6.710 6.145 5.650 5.216 4.833 4.494 4.192 10.368 9.787 9.253 8.760 8.306 7.887 7.139 6.495 5.938 5.453 5.029 4.656 4.327 11.255 | 10.575 9.954 9.385 8.863 8.384 7.536 6.814 6.194 5.660 5.197 4.793 4.439 12.134 | 11.348 10.635 9.986 9.394 8.853 7.904 7.103 6.424 5.842 5.342 4.910 4.533 13.004 | 12.106 | 11.296 | 10.563 | 9.899 9.295 8.244 17.367 6.628 6.002 5.468 5.008 4.61 13.865 | 12.849 | 11.938 | 11.118 | 10.380 | 9.712 18.559 7.606 6.811 6.142 5.575 5.092 4.675 18.046| 16.35114.877 | 13.590 | 12.462 | 11.470 19.818 8.514 7.469 6.623 5.929 4.870 22.023 | 19.523 | 17.413 | 15.622 | 14.094 | 12.783 | 10.675 9.077 7.843 6.873 6.097 5.467 4.948 25.808 | 22.396 | 19.600 | 17.292 | 15.372 | 13.765 | 11.258| 9427 8.055 7.003 6.177 5.517 4.979 32.835 | 27.355 | 23.115 | 19.793 | 17.159 | 15.046 | 11.925 | 9.779 | 8.244 | 7.105 | 6.233 | 5.548 | 4.997 45 6789pm2346 5.353 Future Value of Annuity of $1 Periods 2% 18% 1% 1.000 2.010 3.030 4.060 5.101 1.000 2.020 3.060 4.122 5.204 3% 1.000 2.030 3.091 4.184 5.309 4% 1.000 2.040 3.122 4.246 5.416 5% 1.000 2.050 3.153 4.310 5.526 6% 1.000 2.060 3.184 4.375 5.637 8% 1.000 2.080 3.246 4.506 5.867 10% 1.000 2.100 3.310 4.641 6.105 12% 1.000 2.120 3.374 4.779 6.353 14% 1.000 2.140 3.440 4.921 6.610 16% 1.000 2.160 3.506 5.066 6.877 1.000 2.180 3.572 20% 1.000 2.200 3.640 5.368 7.442 5.215 7.154 oco voor own 6.152 7.214 8.286 9.369 10.462 6.308 7.434 8.583 9.755 10.950 6.468 7.662 8.892 10.159 11.464 6.633 7.898 9.214 10.583 12.006 6.802 8.142 9.549 11.027 12.578 6.975 8.394 9.897 11.491 13.181 7.336 8.923 10.637 12.488 14.487 7.716 9.487 11.436 13.579 15.937 8.115 10.089 12.300 14.776 17.549 8.536 10.730 13.233 16.085 19.337 8.977 11.414 14.240 17.519 21.321 9.442 12.142 15.327 19.086 23.521 9.930 12.916 16.499 20.799 25.959 11.567 12.683 13.809 14.947 16.097 22.019 28.243 34.785 48.886 12.169 13.412 14.680 15.974 17.293 12.808 14.192 15.618 17.086 18.599 13.486 15.026 16.627 18.292 20.024 14.207 15.917 17.713 19.599 21.579 14.972 16.870 18.882 21.015 23.276 16.645 18.977 21.495 24.215 27.152 18.531 21.384 24.523 27.975 31.772 20.655 24.133 28.029 32.393 37.280 23.045 27.271 32.089 37.581 43.842 25.733 30.850 36.786 43.672 51.660 28.755 34.931 42.219 50.818 60.965 32.150 39.581 48.497 59.196 72.035 24.297 32.030 40.568 60.402 26.870 36.459 47.575 29.778 41.646 56.085 95.026 33.066 47.727 66.439 120.800 36.786 54.865 79.058 154.762 45.762 73.106 113.283 57.275 72.052 98.347 133.334 164.494 241.333 442.593767.091 91.025 181.871 356.787 1,342.025 115.380 249.214 530.312 2,360.757 146.628 342.603 790.948 4,163.213 186.688 471.981 1,181.882 7,343.858 75.401 Present Value of $1 | Periods 1 0 2 0 3 1% .990 .980 0.971 0.961 0.951 2% 0.980 0.961 0.942 0.924 0.906 3% 0.971 0.943 0.915 0.888 0.863 0.837 0.813 0.789 0.766 0.744 4% 0.962 0.925 0.889 0.855 0.822 5% 6% 0.952 0.943 0.9070.890 0.864 0.840 0.823 0.792 0.784 0.747 8% 0.926 0.857 0.794 0.735 0.681 10% 0.909 0.826 0.751 0.683 0.621 12% 0.893 0.797 0.712 0.636 0.567 14% 0.877 0.769 0.675 0.592 0.519 16% 0.862 0.743 0.641 0.552 0.476 | 18% 20% 0.847 0.833 0.7180.694 0.609 0.579 0.516 0.482 0.437 0.402 5 0.790 0.760 0.731 0.703 0.676 0.564 0.513 0.467 0.424 0.386 0.370 0.335 0.314 0.279 0.266 0.233 0.225 0.194 0.1910.162 0.942 0.933 0.923 0.914 0.905 0.896 0.887 0.879 0.870 0.861 0.888 0.871 0.853 0.837 0.820 0.804 0.788 0.773 0.758 0.743 0.673 0.610 0.552 0.453 0.722 0.701 0.681 0.661 0.642 0.554 0.478 0.412 0.307 0.650 0.625 0.601 0.577 0.555 0.456 0.375 0.308 0.208 0.746 0.705 0.711 0.665 0.677 0.627 0.6450.592 0.614 0.558 0.585 0.527 0.557 0.497 0.530 0.469 0.505 0.442 0.481 0.417 0.377 0.312 0.295 0.233 0.231 0.174 0.142 0.097 0.630 0.583 0.540 0.500 0.463 0.429 0.397 0.368 0.340 0.315 0.215 0.146 0.099 0.046 15 0.507 0.456 0.410 0.452 0.400 0.354 0.404 0.351 0.305 0.361 0.308 0.263 0.322 0.270 0.227 0.287 0.237 0.195 0.257 0.208 0.168 0.229 0.182 0.145 0.205 0.160 0.125 0.183 0.140 0.108 0.104 0.073 0.051 0.059 0.038 0.024 0.033 0.0200.012 0.0110.005 0.003 0.350 0.319 0.290 0.263 0.239 0.149 0.092 0.057 0.022 0.162 0.137 0.116 0.099 0.084 0.037 0.016 0.007 0.001 0.135 0.112 0.093 0.078 0.065 0.820 0.780 0.742 0.672 0.026 0.010 0.004 0.001 40 Future Value of $1 Periods 1% 1.010 1.020 1.030 1.041 1.051 2% 1.020 1.040 1.061 1.082 1.104 3% 1.030 1.061 1.093 1.126 1.159 4% 1.040 1.082 1.125 1.170 1.217 5% 1.050 1.103 1.158 1.216 1.276 6% 1.060 1.124 1.191 1.262 1.338 8% 1.080 1.166 1.260 1.360 1.469 10% 1.100 1.210 1.331 1.464 1.611 12% 1.120 1.254 1.405 1.574 1.762 14% 1.140 1.300 1.482 1.689 1.925 16% 1.160 1.346 1.561 1.811 2.100 18% 1.180 1.392 1.643 1.939 2.288 20% 1.200 1.440 1.728 2.074 2.488 HD ooo vo on AWN 1.062 1.072 1.083 1.094 1.105 1.126 1.149 1.172 1.195 1.219 1.194 1.230 1.267 1.305 1.344 1.265 1.316 1.369 1.423 1.480 1.340 1.407 1.477 1.551 1.629 1.419 1.504 1.594 1.689 1.791 1.587 1.714 1.851 1.999 2.159 1.772 1.949 2.144 2.358 2.594 2.436 2.826 3.278 3.803 4.411 2.700 3.185 3.759 4.435 5.234 2.986 3.583 4.300 5.160 6.192 1.116 1.127 1.138 1.149 1.161 1.220 1.282 1.348 1.489 1.243 1.268 1.294 1.319 1.346 1.384 1.426 1.469 1.513 1.558 1.539 1.601 1.665 1.732 1.801 1.710 1.796 1.886 1.898 2.012 2.133 2.261 2.397 3.207 4.292 5.743 10.286 2.332 2.518 2.720 2.937 3.172 2.853 3.138 3.452 3.797 4.177 1.974 2.195 2.211 2.502 2.476 2.853 2.773 3.252 3.106 3.707 3.479 4.226 3.896 4.818 4.363 5.492 4.887 6.261 5.474 7.138 9.646 13.743 17.000 26.462 29.960 50.950 93.051188.884 5.117 5.936 6.886 7.988 9.266 6.176 7.288 8.599 10.147 11.974 7.430 8.916 10.699 12.839 15.407 1.980 2.079 1.486 1.641 1.811 2.208 1.806 2.094 2.427 3.262 2.191 2.666 3.243 4.801 2.653 3.386 4.322 7.040 4.661 6.848 10.063 21.725 6.727 10.835 17.449 45.259 19.461 40.874 85.850 378.721 27.393 62.669 143.371 750.378 38.338 95.396 237.376 1,469.772 Consider how Flint Valley, a popular ski resort, could use capital budgeting to decide whether the $9 million Waterfall 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 $ 20105245