(Click the icon to view Present Value of $1 table.) (Click the icon to view Present Value of Ordinary Annuity of $1 table.) Consider how Kyler Valley Brook Park Lodge could use capital budgeting to decide whether the $12,000,000 Brook Park Lodge expansion would be a good investment. Assume Kyler Valley's managers developed the following estimates concerning the expansion: 5: (Click the icon to view the estimates.) (Click the icon to view additional information.) What is the project's NPV (round to nearest dollar)? Is the investment attractive? Why or why not? Data Table Calculate the net present value of the expansion. (Enter any factor amounts to three decimal places, X.XXX. Round to the nearest whole dollar.) Annuity PV Factor PV Factor (i=12%, Years Net Cash Inflow (i=12%, n=10) n=10) Present Value Years 1 - 10 Present value of annuity 119 skiers Year 10 Present value of residual value 147 days Total PV of cash inflows 10 years Number of additional skiers per day Average number of days per year that weather conditions allow skiing at Kyler 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 Year o Initial investment 241 Net present value of expansion 77 12,000,000 The expansion is V project because its NPV is Discount rate 12% More Info Print Done Assume that Kyler Valley uses the straight-line depreciation method and expects the lodge expansion to have a residual value of $500,000 at the end of its ten-year life. They have already calculated the average annual net cash inflow per year to be $2,868,852. Print Done