Calculate the net present value of the expansion. (Enter the factor to three decimal places, XXXX. Round your calculations to the nearest whole dollar.) Net Cash Annuity PV Factor PV Factor (i=10%, Years Inflow (i=10%, n=7) n=7) Present Value Years 1-7 Present value of annuity Year 0 Initial investment Net present value of expansion 1 1 X Reference % [ 16% 0.862 1.605 2.246 2.798 3.274 18% 20% 0.847 0.833 1.566 1.528 2.174 2.106 2.690 2.589 3.127 2.991 3.685 4.039 4.344 4.607 4.833 3.498 3.326 3.812 3.605 4.078 3.837 4.303 4.031 4.494 4.192 5.029 4.656 4.327 5.1974.793 4.439 5.342 4.910 4.533 5.468 5.008 4.611 5.575 5.0924.675 Present Value of Ordinary Annuity of S1 Periods 1% 2% 3% 4% 5% 6% 7% 8% 9% 10% 12% 14% 15% Period 1 0.990 0.980 0.971 0.962 0.952 0.943 0.935 0.926 0.917 0.909 0.893 0.877 0.870 Period 2 1.970 1.942 1.913 1.886 1.859 1.833 1.808 1.783 1.759 1.736 1.690 1.647 1.626 Period 3 2.941 2.884 2.829 2.775 2.723 2.673 2.624 2.577 2.531 2.487 2.4022.322 2.283 Period 4 3.902 3.808 3.717 3.630 3.546 3.465 3.387 3.312 3.240 3.170 3.037 2.914 2.855 Period 5 4.853 4.713 4.580 4.452 4.3294212 4.100 3.9933.890 3.791 3.605 3.433 3.352 Period 6 5.795 5.601 5.417 5.242 5.076 4.917 4.767 4.623 4.4864.355 4.111 3.889 3.784 Period 7 6.728 6.472 6.230 6.002 5.786 5.582 5.389 5.206 5.033 4.868 4.564 4.288 4.160 Period 8 7.652 7.325 7.020 6.733 6.463 | 6.210 5.971 5.747 5.535 5.335 4.968 4.639 4.487 Period 9 8.566 8.162 7.786 7.435 7.108 6.802 6.515 6.247 5.995 5.759 5.3284.946 4.772 Period 10 9.471 8.983 8.530 8.111 7.722 7.360 7.024 6.710 6.418 6.145 5.6505.216 5.019 Period 11 10.368 9.787 9.253 8.760 8.306 7.887 7.499 7.139 6.805 6.495 5.938 5.453 5.234 Period 12 11.255 10.575 9.954 9.385 8.863 8.384 7.9437.5367.1616.814 6.1945.660 5.421 Period 13 12.134 11.348 10.635 9.9869.394 8.853 8.358 7.904 7.487 7.103 6.424 5.842 5.583 Period 14 13.004 12.106 11.296 10.563 9.899 9.295 8.745 8.244 7.786 7.367 6.628 6.002 5.724 Period 15 13.865 12.849 11.938 11.118 10.380 9.712 9.108 8.559 8.061 7.606 6.811 6.142 5.847 Period 16 14.718 13.578 12.561 11.652 10.83810.106 9.447 8.851 8.313 7.824 6.9746.265 5.954 Period 17 15.562 14.292 13.166 12. 166 11.27410.4771 9.763 9.122 8.544 8.022 7.120 6.373 6.047 Period 18 16.398 14.992 13.754 12.659 11.690 10.828 10.059 9.372 8.756 8.201 7.250 6.467 | 6.128 Period 19 17.226 15.678 14.32413.134 12.085 11.158 10.336 9.604 8.950 8.365 7.366 6.550 6.198 Period 20 18.046 16.351 14.877 13.590 12.462 11.470 10.594 9.818 9.129 8.514 7.4696.623 6.259 Period 21 18.857 17.011 15.415 14.029 12.821 11.764 10.836 10.017 9.292 8.649 7.562 6.687 6.312 Period 22 19.660 17.658 15.93714.451 13.163 12.042 11.061 10.2011 9.442 8.772 7.6456.743 6.359 Period 23 20.456 18.292 16.444 14.857 13.48912.303 11.272 10.371 9.580 8.883 7.718 6.792 6.399 Period 24 21.243 18.914 16.936 | 15 247 13.79912.550 11.469 10.529 9.7078.985 7.784 6.835 6.434 Period 25 22.023 19.523 17.413 15.622 14.09412.783 11.654 10.675 9.8239.077 7.8436.873 6.464 Period 26 22.795 20.12117.877 15.983 14.375 13.003) 11.826 10.8109.929 9.161 7.896 6.906 6.491 Period 27 23.560 20.707 18.327 16.330 14.643 13.211 11.987 10.935 10.027 9.237 7.943 6.935 6.514 Period 28 24 316 21.28118.764 16.663 14.898 13.406 12.13711.051 10.116) 9.307 7.984 6.961 6.534 Period 29 25.066 21.844 19.188 16.984 15.141 13.591 12.278 11.158 10.198| 9.370 8.022 6.983 6.551 Period 30 25.808 22.396 | 19.600 17.292 15.372 13.765 12.409 11.258 10.274 9.427 8.055 7.003 6.566 Period 40 32.835 27.355 23.115 19.793 17.159 15.046 13.332 11.925 10.757 9.779 8.244 7.105 6.642 Period 50 39.196 31.424 25.73021.482 18.25615.762 13.801 | 12.233 10.962 9.915 8.304 7.133 6.661 5.669 5.749 5.818 5.877 5.929 5.1624.730 5.222 4.775 5.2734.812 5.3164.844 5.353 4.870 5.973 6.011 6.044 6.073 6.097 5.384 4.891 5.410 4.909 5.432 4.925 5.451 4.937 5.467 4.948 6.118 5.480 4.956 6.136 5.492 4.964 6.1525.5024.970 6.166 5.510 4.975 6.177 5.517 4.979 6.233 5.548 4.997 6.246 5.554 4.999 Data table 121 skiers 142 days Number of additional skiers per day Average number of days per year that weather conditions allow skiing at Hunter Valley Useful life of expansion (in years) Average cash spent by each skier per day Average variable cost of serving each skier per day Cost of expansion Discount rate 7 years 241 83 11,000,000 10% Print Done More info Assume that Hunter Valley uses the straight-line depreciation method and expects the lodge expansion to have a residual value of $600,000 at the end of its seven-year life. They have already calculated the average annual net cash inflow per year to be $2,714,756. Print Done