(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 Spring Park Lodge could use capital budgeting to decide whether the $13,500,000 Spring Park Lodge expansion would be a good investment. Assume Kyler Valley's managers developed the following estimates concerning the expansion: (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? Calculate the net present value of the expansion (Enter any factor amounts to three decimal places, X.XXX. Round to the nearest whole dollar.) Net Cash Present Annuity PV Factor (i=8%, n=12) PV Factor (i=8%, n=12) Years Inflow Value 1 -12 12 Present value of annuity Present value of residual value Total PV of cash inflows 0 Initial investment Net present value of expansion * Data Table - X 120 skiers 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 Discount rate $ 149 days 12 years 241 88 13,500,000 8% Print Done * More Info Assume that Kyler Valley uses the straight-line depreciation method and expects the lodge expansion to have a residual value of $750,000 at the end of its twelve-year life. They have already calculated the average annual net cash inflow per year to be $2,735,640. Print Done 6 Reference - Present Value of $1 Periods | 1% 29% 13% 14% | 5% 16% 17% 18% 19% 10% 12% 14% 15% 16% 18% 20% 0.990 | 0.980 10.971 | 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 0.980 | 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 | 0.718 | 0.694 0.971 | 0.942 | 0.915 | 0.889 0.864 | 0.840 0.816 | 0.794 | 0.772 | 0.751 | 0.712 | 0.675 0.658 | 0.641 | 0.609 | 0.579 0.961 | 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 | 0.492 0.951 | 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 0.942 | 0.888 | 0.837 | 0.790 0.745 | 0.705 0.666 0.630 | 0.596 | 0.564 0.507 | 0.456 | 0.432 | 0.410 0.370 0.335 0.933 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 0.923 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 0.914 0.837 0.766 | 0.703 | 0.645 | 0.592 0.544 0.500 | 0.460 | 0.424 0.361 | 0.308 | 0.234 | 0.263 0.225 0.194 0.905 | 0.820 0.744 | 0.676 | 0.614 | 0.558 0.508 0.463 0.422 | 0.385 0.322 0.270 | 0.247 | 0.227 0.191 0.162 0.896 | 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 0.887 | 0.783 | 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 0.879 0.773 | 0.681 | 0.601 | 0.530 | 0.469 0.415 | 0.368 | 0.325 | 0.290 | 0.229 | 0.182 | 0.163 | 0.145 | 0.116 | 0.093 0.870 | 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 0.861 0.743 0.642 | 0.555 | 0.481 | 0.417 0.362 0.315 | 0.275 | 0.239 | 0.183 | 0.140 10.123 | 0.108 | 0.084 | 0.065 0.853 0.728 0.534 0.458 | 0.394 0.339 0.292 | 0.252 0.218 0.163 | 0.123 10.107 0.093 0.071 0.054 0.844 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 0.000 0.045 0.835 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 0.828 0.686 0.570 0.475 0.331 0.277 0.232 0.194 0.164 0.116 0.083 0.070 0.000 0.043 0.031 0.820 0.673 0.554 0.456 0.377 0.312 0.215 0.178 0.149 0.104 0.073 0.061 0.051 0.037 0.026 0.811 0.660 0.533 0.439 | 0.359 0.294 0.242 0.199 | 0.164 | 0.135 0.093 | 0.064 10.053 0.044 0.031 0.022 647 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 0.018 634 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 | 0.125 0.102 0.066 0.043 0.035 0.023 0.019 0.013 0.610 0.478 0.375 | 0.295 0.233 0.184 0.146 | 0.116 0.092 0.059 0.033 0.030 0.024 0.016 0.010 0.598 0.464 | 0.361 | 0.281 0.220 0.172 | 0.135 | 0.106 0.084 0.053 0.033 0.026 0.021 0.014 0.009 0.586 0.450 0.347 | 0.268 0.207 0.161 0.125 | 0.093 0.076 0.047 0.029 | 0.023 0.018 0.011 0.007 0.574 | 0.437 | 0.333 | 0.255 | 0.150 0.116 0.090 0.069 0.042 0.026 0.020 0.016 0.010 0.005 | 0.424 | 0.321 | 0.243 | 0.185 | 0.141 | 0.107 | .082 | .063 | 0.037 | 0.022 | 0.017 | 0.014 0.008 0.005 | 0.412 | 0.308 | 0.231 | 0.174 | 0.131 | 0.099 | 0.075 | 0.057 | 0.033 | 0.020 | 0.015 | 0.012 0.004 0.453 0.307 | 0.208 | 0.142 | 0.097 0.067 0.045 | 0.032 0.022 0.011 0.005 | 0.004 0.003 | 0.001 0.001 | 0.608 | 0.372 | 0.228 | 0.141 | 0.087 | 0.054 | 0.034 | 0.021 | 0.013 | 0.009 | 0.003 | 0.001 | 0.001 | 0.001 | 0.623 0.395 0.258 0.196 Print Done i Reference - X 16% 0.862 1.605 2.246 2.798 3.274 Present Value of Ordinary Annuity of $1 Periods 1% 2% 3% 4% 5% 6% 7% 8% 9% 10% 0.990 0.980 0.971 0.962 0.952 0.943 0.935 0.926 0.917 0.909 1.970 1.942 1.913 1.886 1.859 1.8331.808 1.783 1.759 1.736 2.941 2.884 2.829 2.775 2.723 2.673 2.624 2.577 2.531 2.487 3.902 3.808 3.717 3.630 3.546 3.465 | 3.387 3.312 3.240 3.170 4.853 4.713 4.580 | 4.452 | 4.329 4.212 4.100 3.993 3.890 | 3.791 5.795 5.601 5.417 5.242 5.076 4.917 4.767 4.623 4.486 4.355 6.728 6.472 6.230 6.002 5.786 5.582 5.389 5.206 5.033 4.868 7.652 7.325 7.020 6.733 6.463 6.210 5.971 5.747 5.535 5.335 8.566 8.162 7.786 7.435 7.108 6.802 6.515 6.247 5.995 5.759 9.471 8.983 8.530 8.111 7.722 7.360 7.024 6.710 6.418 6.145 | 10.368 9.787 9.253 8.760 8.306 7.887 7.499 7.139 6.805 6.495 11.255 10.575 9.954 9.385 | 8.8638.384 7.943 7.536 7.1616.814 12.134 11.348 10.635 9.986 9.3948.853 8.358 7.904 7.487 7.103 13.004 12.106 11.296 10.563 9.899 | 9.295 8.745 8.244 7.786 7.367 13.865 12.849 11.938 11.118 10.380 9.712 9.108 8.559 8.061 7.606 14.718 13.578 12.561 11.652 10.838 10.106 9.447 8.851 8.313 7.824 14.292 13.166 12.166 11.274 10.477 9.763 9.122 8.544 8.022 14.992 13.754 12.659 11.690 10.828 10.059 9.372 8.756 8.201 15.678 14.324 13.134 12.085 11.158 10.336 9.604 8.950 8.365 14.877 13.590 12.462 11.470 10.594 9.818 9.129 8.514 15.415 14.029 12.821 11.764 10.836 10.017 9.292 8.649 14.451 13.163 12.042 11.061 10.201 442 8.772 .444 14.857 12.303 11.272 10.371 9.580 8.883 16.936 15.247 13.799 12.550 11.469 10.529 9.707 8.985 17.413 15.622 14.094 12.783 11.654 10.675 9.823 9.077 17.877 15.983 14.375 13.003 11.826 10.810 9.929 9.161 18.327 16.330 14.643 13.211 10.935 10.027 9.237 18.764 16.663 14.898 13.406 11.051 10.116 9.307 21.844 19.188 16.984 15.141 13.591 12.278 11.158 10.1989.370 22.396 | 19.600 17.292 15.372 13.765 12.409 | 11.258 10.274 | 9.427 32.835 | 27.355 | 23.115 19.793 | 17.159 | 15.046 | 13.332 | 11.925 10.757 | 9.779 39.196 31.424 25.730 21.482 18.256 15.762 13.801 12.233 10.962 9.915 12% 14% 15% 0.893 0.877 0.870 1.6901.6471.626 2.402 2.322 2.283 3.037 2.914 | 2.855 3.605 3.433 3.352 4.111 3.889 3.784 4.564 4.288 4.160 4.968 4.639 4.487 5.328 4.946 | 4.772 5.650 5.216 5.019 5.938 5.453 5.234 6.194 5.660 5.421 6.424 5.842 5.583 6.628 6.002 5.724 6.811 6.142 5.847 6.265 5.954 7.120 6.373 6.047 7.250 6.467 7.366 6.550 6.198 7.469 6.623 7.562 6.687 6.743 7.718 6.792 7.784 6.835 434 7.8436.873 464 7.896 6.906 6.491 7.943 6.935 6.514 7.984 6.961 6.534 8.022 6.983 6.551 8.055 7.003 6.566 8.244 7.105 6.642 8.304 7.133 6.661 3.685 4.039 4.344 4.607 4.833 5.029 5.197 5.342 5.468 5.575 5.669 5.749 5.818 5.877 5.929 18% 0.847 1.566 2.174 2.690 3.127 3.498 3.812 4.078 4.303 4.494 4.656 4.793 4.910 5.008 5.092 5.162 5.222 5.273 5.316 5.353 5.384 5.410 20% 0.833 1.528 2.106 2.589 2.991 3.326 3.605 3.837 4.031 4.192 4.327 4.439 4.533 4.611 4.675 4.730 4.775 4.812 4.844 4.870 4.891 4.909 6.974 6.128 16.351 011 88 937 7.645 312 359 399 13.489 432 4.925 4.937 5.973 6.011 6.044 6.073 6.097 6.118 6.136 6.152 6.166 6.177 4964 5.451 5.467 4.948 5.480 5.492 5.502 4.970 5.510 5.517 4.979 5.548 4.997 5.5544999 4.975 6.233 6.246 Print Done