(Click the icon to view Present Value of $1 table.) 2 (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 $12,500,000 Spring Park Lodge expansion would be a good investment. Assume Kyler Valley's managers developed the following estimates concerning the expansion: E: (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 the factor to three decimal places, X.XXX. Round your calculations to the nearest whole dollar.) Net Cash Inflow Annuity PV Factor (i=8%, n=8) PV Factor (i=8%, n=8) Present Value Years 1-8 Present value of annuity 0 Initial investment Net present value of expansion Data Table 121 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 $ 148 days 8 years 238 88 12,500,000 8% Print Done i More Info Assume that Kyler Valley uses the straight-line depreciation method and expects the lodge expansion to have no residual value at the end of its eight-year life. The project's average annual net cash inflow per year is expected to be $2,686,200. Print Done i Reference Present Value of $1 Periods 3% 0.971 0.943 0.915 0.888 0.863 0.837 0.813 0.789 0.766 0.744 0.078 O 1% 2% 0.990 0.980 0.980 0.961 0.971 0.942 0.961 0.924 0.951 0.906 0.942 0.888 0.933 0.871 0.923 0.853 0.914 0.837 0.905 0.820 0.896 0.804 0.887 0.788 0.879 0.773 0.758 0.861 0.743 0.728 0.714 0.700 0.686 0.820 0.673 0.811 | 0.660 0.803 0.647 0.634 0.788 0.622 0.780 0.610 0.772 0.598 0.764 0.586 .757 | 0.574 0.7490.563 0.742 0.552 0.672 0.608 0.372 853 4% 5% 0.962 0.952 0.925 0.907 0.889 0.864 0.855 0.823 0.822 0.784 0.790 0.746 0.760 0.711 0.731 0.677 0.703 0.645 0.676 0.614 0.650 0.585 0.625 0.557 0.601 0.530 0.577 0.505 0.555 0.481 0.534 0.458 0.513 0.436 0.494 0.416 0.475 0 475 0.396 0.456 0.377 0.439 0.359 0.422 0.342 0.4060.326 0.390 0.310 0.375 0.295 0.361 0.281 0.347 0.333 0.255 0.321 0.243 0.308 0.231 0.208 0.142 0.141 0.087 6% 7% 8% 9% 10% 12% 14% 15% 0.943 | 0.935 0.926 0.917 0.909 0.893 0.877 0.870 0.890 0.873 0.8570.842 0.826 0.797 0.769 0.756 0.840 0.816 0.794 0.772 | 0.751 0.712 0.675 0.658 | 0.792 0.763 0.735 0.708 0.683 0.636 0.592 0.572 0.747 0.713 0.681 0.650 0.621 0.567 | 0.519 0.497 0.705 0.6660.630 0.596 0.564 0.507 0.456 0.432 0.665 0.623 0.583 0.547 0.513 0.452 0.400 0.376 0.627 0.582 0.540 0.502 0.467 0.404 0.351 0.327 0.592 0.544 0.500 0.460 0.424 0.361 0.308 0.284 0.558 0.508 0.463 0.422 0.386 0.322 0.270 0.247 0.527 0.475 0.429 0.388 0.350 0.287 | 0.237 0.215 0.497 0.444 0.397 0.356 | 0.319 0.257 | 0.208 0.187 0.469 0.415 0.368 0.326 0.290 0.229 0.182 0.163 0.442 0.388 0.340 0.299 0.263 0.205 | 0.160 0.141 0.417 0.362 0.315 0.275 0.239 0.183 | 0.140 0.123 0.394 0.3390.292 0.252 0.218 0.163 0.123 0.107 0.371 0.317 0.270 0.231 0.1980.146 0.108 0.093 0.350 0.296 0.250 0.212 0.180 0.130 0.095 0.081 0.331 0277 0.232 0.194 0.164 0.116 0.083 | 0.070 0.312 0.258 0.215 0.178 0.149 0.104 0.073 | 0.061 0.294 0.242 0.199 0.164 | 0.135 0.093 0.064 0.053 0.278 0.226 0.184 0.150 | 0.123 0.083 0.056 0.046 0.262 0.211 0.170 0.138 | 0.112 0.074 0.049 0.040 0.247 0.197 0.158 0.126 0.102 0.066 0.043 0.035 0.233 0.184 0.146 0.116 0.092 0.059 0.038 0.030 0.220 0.172 0.135 0.106 0.084 0.053 0.033 0.026 0.207 0.161 0.125 0.098 0.076 0.047 0.029 0.023 0.196 0.150 0.116 | 0.090 0.069 0.042 0.026 0.020 0.185 0.141 0.107 0.082 0.063 0.037 0.022 0.017 0.174 0.131 0.099 0.075 0.057 0.033 0.0200.015 0.097 0.067 0.046 0.032 0.022 0.011 0.005 0.004 0.054 0.034 0.021 0.013 0.009 0.003 0.001 0.001 16% 18% 20% 0.862 0.847 0.833 0.743 0.7180.694 0.641 0.609 0.579 0.5520.516 0.482 0.476 0.437 0.402 0.410 0.370 0.335 0.354 0.314 0.279 0.305 0.266 0.233 0.263 0.225 0.194 0.227 0.191 0.162 0.195 0.162 | 0.135 0.168 0.137 0.112 0.145 0.116 0.093 0.125 0.099 0.108 0.084 0.065 0.093 0.071 0.054 0.080 0.060 0.045 0.069 0.051 0.038 0.060 0.043 0.031 0.051 0.037 0.026 0.044 0.031 0.022 0.038 0.026 0.018 0.033 0.022 0.015 0.028 0.019 0.013 0.024 0.0160.010 0.021 0.014 0.009 0.018 0.011 0.007 0.016 0.010 0.006 0.014 0.008 0.005 0.012 0.007 0.004 0.003 0.001 0.001 0.001 O O 0.722 0.701 0.681 0.661 0.642 0.623 0.605 0.587 0.570 0.554 0.538 0.522 0.507 0.492 0.478 0.464 0.450 0.437 0.424 0.412 0.307 0.228 836 O 828 0.795 0.268 Print Done i Reference Periods 20% 0.833 1.528 2.106 2.589 4.580 2991 1% 2% 0.990 0.980 1.970 1.942 2.9412.884 3.902 3.808 4.853 4.713 5.795 5.601 6.728 6.472 7.652 7.325 8.566 8.162 9.471 8.983 10.368 9.787 11.255 10.575 12.134 11.348 13.004 12.106 13.865 12.849 14.718 13.578 15.562 14.292 16.398 14.992 15.678 16.351 12% 0.893 1.690 2.402 3.037 3.605 4.111 4.564 4.968 5.328 5.650 938 .194 424 18% 0.847 1.566 2.174 2.690 3.127 3.498 3.812 4.078 4.303 4.494 7.786 14% 0.877 1.647 2.322 2.914 3.433 3.889 4.288 4.639 4.946 5.216 5.453 5.660 5.842 6.002 6.142 6.265 6.373 6.467 6.550 6.623 3.326 3.605 3.837 4.031 4.192 4.327 628 4.611 Present Value of Ordinary Annuity of $1 3% 4% 5% 6% 7% 8% 9% 10% 0.971 0.962 0.952 0.943 0.935 0.926 0.917 0.909 1.913 1.886 1.859 1.8331.808 1.783 1.759 1.736 2.829 2.775 2.723 2.673 2.624 2.577 2.531 2.487 3.717 3.630 3.546 3.465 | 3.387 3.312 3.240 3.170 4.452 4.329 4.212 4.100 3.993 3.890 3.791 5.417 5.242 5.076 4.917 4.767 4.623 4.486 4.355 6.230 6.002 5.786 5.582 5.389 5.206 5.033 4.868 7.020 6.733 6.463 6.210 5.971 5.747 5.535 5.335 7.435 7.108 6.802 6.515 6.247 5.995 5.759 8.530 8.111 7.722 7.360 7.024 6.710 6.418 6.145 9.253 8.760 8.306 7.887 7.499 7.139 6.805 6.495 9.954 9.385 | 8.863 | 8.384 7.943 7.536 7.1616.814 10.635 9.9869.394 8.853 8.358 7.904 7.487 7.103 11.296 | 10.563 9.899 9.295 8.745 8.244 7.786 7.367 11.938 11.118 10.380 9.712 9.108 8.559 8.061 7.606 12.561 11.652 10.838 10.106 9.447 8.851 8.313 7.824 13.166 12.166 11.274 10.477 9.763 9.122 8.544 8.022 13.754 12.659 11.690 10.828 10.059 9.372 8.756 8.201 14.324 13.134 12.085 11.158 10.336 9.604 8.950 8.365 14.877 13.590 11.470 10.594 9.818 9.129 8.514 15.415 14.029 11.764 10.836 10.017 9.292 8.649 15.937 11.061 9.442 8.772 16.444 12.303 11.272 10.371 9.580 8.883 16.936 10.529 9.707 8.985 17.413 15.622 14.094 12.783 11.654 10.675 9.8239.077 17.877 15.983 14.375 13.003 11.826 10.810 9.929 9.161 18.327 16.330 14.643 13.211 11.987 10.935 10.027 9.237 18.764 16.663 14.898 13.406 12.137 11.051 | 10.116 9.307 19.188 16.984 15.141 13.591 | 12.278 11.158 10.1989.370 19.600 17.292 15.372 13.765 12.409 11.258 10.274 9.427 23.115 19.793 17.159 15.046 13.332 11.925 10.757 9.779 25.730 21.482 18.256 15.762 13.801 12.233 10.962 9.915 5.847 15% 16% 0.870 0.862 1.626 1.605 2.283 2.246 2.855 2.798 3.352 3.274 3.784 3.685 4.160 4.039 4.487 4.344 4.772 4.607 5.019 4.833 5.234 5.029 5.421 5.197 5.583 5.342 5.724 5.468 5.575 5.954 5.669 6.047 5.749 6.128 5.818 6.198 5.877 6.259 5.929 6.312 5.973 6.359 6.011 6.399 6.044 6.434 6.073 6.464 6.097 6.491 6.118 6.514 6.136 6.534 6.152 6.551 6.166 6.566 6.177 6.642 6.233 6.6616.246 4.675 4.730 4.775 4.812 4.844 4.870 4.891 4.909 12.462 12.042 10.201 4.656 4.793 4.910 5.008 5.092 5.162 5.222 5.273 5.316 5.353 5.384 5.410 5.432 5.451 5.467 5.480 5.492 5.502 5.510 5.517 5.548 5.554 4.925 811 6.974 7.120 7.250 7.366 7.469 7.562 7.645 7.718 7.784 7.843 7.896 7.943 7.984 8.022 8.055 8.244 8.304 12.550 18.914 19.523 20.121 20.707 24.316 21.281 25.066 21.844 25.808 22.396 32.835 27.355 39.196 31.424 6.687 6.743 6.792 6.835 6.873 6.906 6.935 6.961 6.983 7.003 7.105 7.133 4.937 4.948 4.956 4.964 4.970 4.975 4.979 4.997 Print Print Done]