(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 Juda Valley Stream Park Lodge could use capital budgeting to decide whether the $12,000,000 Stream Park Lodge expansion would be a good investment. Assume Juda Valley's managers developed the following estimates concerning the expansion: (Click the icon to view the estimates.) Data Table icon to view additional information.) What is the project's NPV (round to nearest dollar)? Is the investment attractive? Why or why not? Calculate the net present value of the expansion. (Enter any factor amounts to three decimal places, X.XXX. Round to the nearest whole dollar.) Present Net Cash Inflow Annuity PV Factor (i=8%, n=8) PV Factor (i=8%, n=8) Years Value 1 - 8 Present value of annuity Present value of residual value 8 Total PV of cash inflows Initial investment Net present value of expansion The expansion is not an attractive project because its NPV is negative A Data Table 121 skiers 141 days Number of additional skiers per day Average number of days per year that weather conditions allow skiing at Juda 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 8 years 241 78 12,000,000 Print Done More Info Assume that Juda Valley uses the straight-line depreciation method and expects the lodge expansion to have a residual value of $1,000,000 at the end of its eight-year life. They have already calculated the average annual net cash inflow per year to be $2,780,943. Print Done A Reference Present Value of $1 Periods 1% 0.990 0.980 0.971 0.961 0.951 0.942 0.933 0.923 0.914 0.905 0.896 0.887 0.879 0.870 0.861 2% 3% 4% 5% 6% 7% 8% 9% 10% 12% 14% 15% 16% 18% 20% 0.980 0.971 0.962 0.952 0.943 0.935 0.926 0.917 0.909 0.893 0.877 0.870 0.862 0.847 0.833 0.961 0.943 0.925 0.907 0.890 | 0.873 0.857 0.842 0.826 0.797 0.769 0.756 | 0.743 0.7180.694 0.942 0.915 0.889 0.864 0.840 0.816 0.7940.772 0.751 0.712 0.675 0.658 0.641 0.609 0.579 0.924 0.888 0.855 0.823 0.792 0.763 0.735 | 0.708 0.683 0.636 0.592 0.572 0.552 0.516 0.482 0.906 0.863 0.822 0.784 0.747 0.713 0.681 0.650 0.621 0.567 0.519 0.497 0.476 0.437 0.402 0.888 0.837 0.790 0.746 0.705 0.666 0.630 0.596 | 0.564 0.507 0.456 0.432 0.410 0.370 0.335 0.871 0.813 0.760 0.711 0.665 0.623 0.583 0.547 0.513 0.452 0.400 0.376 0.354 0.314 0.279 0.853 0.789 0.731 0.677 0.627 0.582 0.540 0.502 0.467 0.404 0.351 0.327 0.305 0.266 0.233 0.837 0.766 0.703 0.645 0.592 0.544 0.500 0.460 0.424 0.361 0.308 0.284 0.263 0.225 0.194 0.820 0.744 0.676 0.614 0.558 0.508 0.463 0.422 0.386 0.322 0.270 0.247 0.227 0.191 0.162 0.804 0.722 0.650 0.585 0.527 0.475 0.429 0.388 0.350 0.287 0.237 0.215 | 0.195 0.162 0.135 0.788 0.701 0.625 0.557 0.497 0.444 0.397 0.356 0.319 0.257 0.208 0.187 | 0.168 0.137 0.112 0.773 0.681 0.601 0.530 0.469 | 0.415 0.368 0.326 0.290 0.229 0.182 0.163 0.145 0.116 0.093 0.758 0.661 0.577 0.505 0.442 0.388 0.340 0.299 0.263 0.205 0.160 0.141 0.125 0.099 0.078 0.743 0.642 0.555 0.481 0.417 0.362 0.315 0.275 0.239 0.183 0.140 0.123 0.108 0.084 0.065 0.728 0.623 0.534 0.458 0.394 0.3390.292 0.252 0.218 0.163 0.123 0.107 0.093 0.071 | 0.054 0.714 0.605 0.513 0.436 0.371 | 0.317 0.270 0.231 0.198 0.146 0.108 0.093 0.080 0.060 | 0.045 0.700 0.587 0.494 0.416 0.350 0.296 0.250 0.212 0.180 0.130 0.095 0.081 0.069 0.051 0.038 0.686 0.570 0.475 0.396 0.331 | 0.277 0.232 | 0.194 0.164 0.116 0.083 0.070 0.060 0.043 0.031 0.673 0.554 | 0.456 0.377 0.312 0.258 0.215 0.178 0.149 0.104 | 0.073 0.061 0.051 0.037 0.026 0.660 0.538 0.439 0.359 0.294 0.242 0.199 0.164 0.135 0.093 | 0.064 0.053 0.044 0.031 0.022 0.647 0.522 0.422 0.342 0.278 0.226 0.184 0.150 | 0.123 0.083 0.056 0.046 0.038 0.026 0.018 0.634 0.507 0.406 0.326 0.262 0.211 0.170 0.138 0.112 0.074 0.049 0.040 0.033 0.022 0.015 0.622 0.492 0.390 0.310 0.247 0.197 0.158 0.126 | 0.102 0.066 0.043 0.035 0.028 0.019 0.019 0.013 0.610 0.478 0.375 0.295 0.233 0.184 0.146 0.116 0.092 0.059 0.038 0.030 0.024 0.016 0.010 500 L L 264 LA 204022010 1721 125 L 106 LA ORA 1006200221 026 L 1021 Lon Long 0.853 0.844 0.836 0.828 0.820 0.811 0.803 0.795 0.788 0.780 L0 779 Print Done 0.492 0.788 0.780 0.772 0.764 0.757 0.749 0.742 0.672 0.608 0.622 0.610 0.598 0.586 0.574 0.563 0.552 0.453 0.372 0.464 0.450 0.437 0.424 0.412 0.307 0.228 0.390 0.310 0.375 0.295 0.361 0.281 0.347 0.268 0.333 | 0.255 0.321 0.243 0.308 0.231 0.208 0.142 0.141 0.087 0.247 0.233 0.220 0.207 0.196 0.185 0.174 0.097 0.054 0.197 0.184 0.172 0.161 0.150 0.141 0.131 0.067 0.034 0.158 0.126 0.146 0.116 0.135 0.106 0.125 0.098 0.116 0.090 0.107 0.082 0.099 0.075 0.046 0.032 0.021 0.013 0.102 0.092 0.084 0.076 0.069 | 0.063 0.057 0.022 0.009 0.066 0.059 0.053 0.047 0.042 0.037 0.033 0.011 0.003 0.043 0.035 0.028 0.038 0.030 0.024 0.033 0.026 0.021 | 0.029 0.023 0.018 0.026 0.020 0.016 0.022 0.017 0.014 0.020 0.015 0.012 0.005 0.0040.003 0.001 0.001 0.001 0.019 0.013 0.016 0.010 0.014 0.009 0.0110.007 0.010 | 0.006 0.008 0.005 0.007 0.00 0.001 0.001 Print Done i Reference Periods 5.335 Present Value of Ordinary Annuity of $1 1% 2% 3% 4% 5% 6% 7% 8% 9% 10% 12% 14% 0.990 0.980 0.971 0.962 0.952 0.943 0.935 0.926 0.917 0.909 0.893 0.877 1.970 1.942 1.913 1.886 1.859 1.8331.8081.783 1.759 1.736 1.6901.647 2.941 2.884 2.829 2.775 2.723 2.673 2.624 2.577 2.531 2.487 2.402 2.322 3.902 3.808 3.717 3.630 3.546 | 3.465 | 3.387 3.312 3.240 3.170 3.037 2.914 4.853 4.713 4.580 4.452 4.329 | 4.212 4.100 3.993 3.890 | 3.791 3.605 3.433 5.795 5.601 5.417 5.242 5.076 4.917 4.767 4.623 4.486 | 4.355 | 4.111 3.889 6.728 6.472 6.230 6.002 5.786 5.582 5.389 5.206 5.033 4.868 4.564 4.288 7.652 7.325 7.020 6.733 6.463 6.210 5.971 5.747 5.535 4.968 4.639 8.566 8.162 7.786 7.435 7.108 6.802 6.515 6.247 5.995 5.759 5.328 4.946 9.471 8.983 8.530 8.111 7.722 7.360 | 7.0246.710 6.418 6.145 5.650 5.216 10.368 | 9.787 9.253 8.760 8.306 7.887 7.499 7.139 6.805 6.495 5.938 5.453 11.255 10.575 | 9.954 9.385 | 8.863 8.384 7.943 | 7.536 7.161 | 6.814 6.194 5.660 12.134 11.348 10.635 5.842 13.004 12.106 11.296 10.563 9.899 9.295 8.745 8.244 7.786 7.367 6.628 6.002 13.865 12.849 11.938 11.118 10.380 9.712 9.108 8.559 8.061 7.606 6.811 6.142 14.718 13.578 12.561 11.652 10.838 10.106 9.447 8.851 8.313 7.824 6.974 6.265 15.562 | 14.292 13.166 12.166 | 11.274 10.477 9.763 9.122 8.544 8.022 7.120 6.373 16.398 14.992 13.754 12.659 11.690 10.828 10.059 9.372 8.756 8.2017.250 6.467 17.226 15.678 14.324 13.134 12.085 11.158 10.336 9.604 8.950 8.365 | 7.366 6.550 18.046 16.351 14.877 13.590 12.462 11.470 10.594 9.818 9.129 8.5147.469 6.623 18.857 17.011 15.415 14.029 12.821 11.764 10.836 10.017 9.292 8.649 7.562 6.687 19.660 17.658 15.937 14.451 13.163 12.042 11.061 10.201 9.442 8.772 7.645 6.743 20.456 46 A 18.292 | 16.444 14.857 14 857 13.489 12.303 11.272 10.371 9.580 8.883 7.718 6.792 21.243 18.914 16.936 15.247 13.799 12.550 11.469 10.529 9.707 8.985 7.784 6.835 22.023 19.523 17.413 15.622 14.094 12.783 11.654 10.675 9.823 9.077 7.843 6.873 22 705 106 104 117 277 115 002 14 275 12 002 11 006 1 10 10 1 a 020 10 161 1 7 QOR LA O 15% 16% 18% 20% 0.870 0.862 0.847 0.833 1.626 | 1.605 1.566 1.528 2.283 2.246 2.174 2.106 2.855 2.798 2.690 2.589 3.352 3.274 3.127 2.991 3.784 3.685 3.498 3.326 4.160 4.039 3.812 3.605 4.487 4.344 4.078 3.837 4.772 4.607 4.303 4.031 5.019 4.833 4.494 4.192 5.234 5.029 | 4.656 4.327 5.421 5.197 4.793 4.439 5.583 5.342 4.910 4.533 5.724 5.468 5.008 4.611 5.847 5.575 5.092 4.675 5.954 5.669 5.162 4.730 6.047 5.749 4.775 6.128 5.818 5.273 4.812 6.198 5.877 5.316 4.844 6.259 5.929 5.353 4.870 6.312 5.973 5.384 4.891 6.359 6.011 5.410 4.909 6.399 6.044 5.432 4.925 6.434 6.073 5.451 4.937 6.464 6.097 5.467 4.948 L 6 101 16 119 1 5.490 14 066 5.222 Print Done 4.937 22.023 19.523 4.948 21.243 18.914 | 16.936 17.413 22.795 20.121 17.877 23.560 20.707 18.327 24.316 21.281 18.764 25.066 21.844 19.188 25.808 22.396 | 19.600 32.835 27.355 23.115 39.196 31.424 25.730 15.247 15.622 15.983 16.330 16.663 16.984 17.292 19.793 21.482 13.799 12.550 11.469 10.529 9.707 14.094 12.783 11.654 10.675 9.823 14.375 13.003 11.826 | 10.810 9.929 14.643 13.211 11.987 10.935 10.027 14.898 13.406 12.137 11.051 10.116 15.141 13.591 | 12.278 11.158 10.198 15.372 13.765 12.409 | 11.258 | 10.274 17.159 | 15.046 13.332 | 11.925 10.757 18.256 15.762 13.801 12.233 10.962 8.985 9.077 9.161 9.237 9.307 9.370 9.427 9.779 9.915 7.784 7.843 7.896 7.943 7.984 8.022 8.055 8.244 8.304 6.835 6.873 6.906 6.935 6.961 6.983 7.003 7.105 7.133 6.434 6.464 6.491 6.514 6.534 6.551 6.566 6.642 6.661 6.073 6.097 6.118 6.136 6.152 6.166 6.177 6.233 6.246 5.451 5.467 5.480 5.492 5.502 5.510 5.517 5.548 5.554 4.956 4.964 4.970 4.975 4.979 4.997 4.999 Print Done