(Click the icon to view Present Value of $1 table.) Consider how Kyler Valley Stream Park Lodge could use capital budgeting to decide whether the $12,500,000 Stream Park Lodge expansion would be a good investment. Assume Kyler Valley's managers developed the following estimates concerning the expansion: BE: (Click the icon to view the estimates.) (Click the icon to view additional information.) (Click the icon to view Present Value of Ordinary Annuity of $1 table.) What is the project's NPV (round to nearest dollar)? Is the investment attractive? Why or why not? More info Calculate the net present value of the expansion. (Enter any factor amounts to three decimal places, X.XXX. Round to the nearest whole dolle Annuity PV Factor PV Factor (i=12%, Years Net Cash Inflow (i=12%, n=12) n=12) Present Value Years 1 - 12 Present value of annuity Assume that Kyler Valley uses the straight-line depreciation method and expects the lodge expansion to have a residual value of $950,000 at the end of its twelve-year life. They have already calculated the average annual net cash inflow per year to be $2,961,184. Year 12 Present value of residual value Total PV of cash inflows Data table Year 0 Initial investment Net present value of expansion 122 skiers 148 days 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 12 years $ 242 78 12,500,000 Discount rate 12%