Consider how Bear Valley, a popular ski resort, could use capital budgeting to decide whether the $8 milion Blizzard Park Lodge expansion would be a good investment Click the icon to view the expansion estimates.) (Click the icon to view the present value annuity factor table.) (Click the icon to view the present value factor table.) Click the icon to view the future value annuity tactor table.) (Click the icon to view the future value factor table.) Read the requirements Requirement 1. What is the project's NPV? Is the investment attractive? Why or why not? Calculate the net present value of the expansion (Round your answer to the nearest whole dollar. Use parentheses or a minus sign for a negative net present value.) Net present value of expansion $ 3,439,693 Is the investment attractive? Why? The expansion is an attractive project because its NPV is positive Requirement 2. Assume the expansion has no residual value. What is the project's NPV? Is the investment still attractive? Why or why not? Calculate the project's NPV. (Round your answer to the nearest whole dollar Use parentheses or a minus sign for a negative net present value.) Net present value of expansion Help Me Solve This Video Get More Help Clear All Check Answer V! Reference to to to ent 20% 0.833 1.528 2.106 2.589 2.991 Tha res Present Value of Annuity of $1 Periods 1% 2% 3% 4% 5% 6% 8% 10% 12% 14% 16% 18% Period 1 0.990 0.980 0.971 0.962 0.952 0.943 0.926 0.909 0.893 0.877 0.862 0.847 Period 2 1.970 1.942 1.913 1.886 1.859 1.833 1.783 1736 1.690 1.647 1.605 1.566 Period 3 2.941 2.884 2.829 2.775 2.723 2.673 2.577 2.487 2.402 2.322 2.246 2.174 Period 4 3.902 3.808 3.717 3.630 3.546 3.465 3.312 3.170 3.037 2.914 2.798 2.690 Period 5 4.853 4.713 4.580 4.452 4.329 4.212 3.993 3.791 3.605 3.433 3.274 3.127 Period 6 5.795 5.601 5.417 5.2425.076 4.917 4.623 4.355 4.111 3.889 3.685 3.498 Period 7 6.728 6.472 6.230 6.002 5.786 5.582 5.206 4.868 4.564 4.288 4.039 3.812 Period 8 7.652 7.325 7.020 6.733 6.463 6.210 5.747 5.335 4.968 4.639 4.344 4.078 Period 9 8.566 8.162 7.786 7.435 7.108 6.802 6.247 5.759 5.328 4.946 4.607 4.303 Period 10 9.471 8.983 8.530 8.111 7.722 7.360 6.710 6.145 5.6505.216 4.833 4.494 Period 11 10.368 9.787 9.2538.760 8.306 7.887 7.139 6.495 5.938 5.453 5.029 4.656 Period 12 11.255 10.575 9.954 9.385 8.863 8.384 7.536 6.8146.1945.660 5.197 4.793 Period 13 12.134 11.348 10.635 9.986 9.394 8.853 7.904 7.103 6.424 5.842 5.342 4.910 Period 14 13.004 12.106 11.296 10.563 9.899 9.295 8.244 7.3676.628 6.002 5.468 5.008 Period 15 13.865 12.849 11.938 11.118 10.380 9.712 8.559 7.6066.811 6.142 5.575 5.092 Period 20 18.046 16.351 14.877 13.590 12.462 11.470 9.818 8.514 7.469 6.623 5.929 5.353 Period 25 22.023 19.523 17.413 15.622 14.094 12.783 10.675 9.077 7.843 6.873 6.097 5.467 Period 30 25.808 22.396 19.600 17.292 15.372 13.765 11.258 9.4278.055 7.003 6.177 5.517 Period 40 32.835 27.355 23.115 19.793 17.159 15.046 11.925 9.7798.244 7.105 6.233 5.548 3.326 3.605 3.837 4.031 4.192 of 4.327 4.439 4.533 4.611 4.675 4.870 4.948 4.979 4.997 Print Done - 1 Reference good Jer how Bd nent. Sick the icd Future Value of $1 ick the icd ick the lcd he require Periods Period 1 Period 2 Period 3 Period 4 Period 5 Period 6 Period 7 Period 8 Period 9 Period 10 1% 1.010 1.020 1.030 1.041 1.051 2% 1.020 1.040 1.061 1.082 1.104 1.126 1.149 1.172 1.195 1219 3% 1.030 1.061 1093 1.126 1.159 1.194 1.230 1.267 1.305 1.344 rement 1. bresent valt ate the net osent valu 1.062 1,072 1.083 1.094 1.100 1.116 1.127 1.138 1.149 1.161 5% 6% 8% 10% 12% 14% 16% 18% 20% 1.040 1.050 1.060 1.080 1.100 1.120 1.140 1.160 1.180 1.200 1.082 1.103 1.124 1.166 1.210 1254 1.300 1.346 1.392 1.440 1.125 1.158 1.191 1.260 1.331 1.405 1.482 1.561 1.643 1.728 1.170 1.216 1.262 1.360 1.464 1.574 1.689 1.811 1.939 2.074 1.217 1.276 1.338 1469 1.611 1.762 1.925 2.100 2.289 2.488 1.265 1.340 1.419 1.587 1.772 1.974 2.195 2.436 2.700 2.986 1316 1.407 1.504 1.714 1.949 2211 2 502 2.826 3.185 3.583 1.369 1.477 1.594 1.851 2.144 2.476 2.853 3.278 3.759 4.300 1.423 1.551 1.689 1999 2358 2.773 3252 3.803 4.435 5.160 1.480 1.62 2.159 2594 3.106 3.707 4.411 5.234 6.192 1.539 1.710 1.898 233228533.479 4226 5.117 6.176 7.430 1.601 1.796 2012 2518 3.138 3.896 4818 5.936 7.288 8.916 1.665 1.886 2133 2720 3452 4.363 5.492 6.886 8.599 10.699 1.732 1.980 2261 2937 3.797 4.887 6.261 7.988 10.147 12 839 1.801 2079 2397 3.172 4.177 5.474 7.138 9.266 11.974 15.407 2.191 2653 3.207 4.661 6.727 9.646 13.743 19.461 27393 38.338 2666 3.386 4.292 6.848 10.835 17.000 26.462 40.874 62 669 95 396 3243 4322 5.743 10.063 17.449 29.960 50.950 85 850 143,371 237376 4.801 7.040 10.286 21.725 45.259 93.051 188.884 378.721 750 378 1469.772 Period 11 Period 12 Period 13 Period 14 Period 15 Period 20 Period 25 Period 30 Period 40 1 243 1268 1.294 1.319 1 346 1486 1.641 1811 2208 1,384 1.426 1469 1513 1.558 1.806 2094 2.427 3.262 1220 1.282 1 348 1.489 Print Done In Me Solve Thie Viden Get More Heln Clear All Check Ansy Reference w Bear V! be a goo he icon to he icon to % He icon to buirement ht 1. Wha net pres net preser value of Present Value of $1 Periods 1% 2% 3% 4% 5% 6% 8% 10% 12% 14% 16% 18% 20% Period 1 0.990 0.980 0.971 0.962 0.952 0.943 0.926 0.909 0.893 0.877 0.862 0.8470.833 Period 2 0.980 0.961 0.943 0.925 0.907 0.890 0.857 0.826 0.797 0.769 0.743 0.7180.694 Period 3 0.971 0.942 0.915 0.889 0.864 0.840 0.794 0.751 0.712 0.675 0.641 0.609 0.579 Period 4 0.961 0.924 0.888 0.855 0.823 0.792 0.735 0.683 0.636 0.592 0.552 0.516 0.482 Period 5 0.951 0.906 0.863 0.822 0.784 0.747 0.681 0.621 0.567 0.519 0.476 0.437 0.402 Period 6 0.942 0.888 0.837 0.790 0.746 0.705 0.630 0.564 0.507 0.456 0.410 0.370 0.335 Period 7 0.933 0.871 0.813 0.760 0.711 0.665 0.583 0.513 0.452 0.400 0.354 0.3140.279 Period 8 0.923 0.853 0.789 0.731 0.677 0.627 0.540 0.467 0.4040.351 0.305 0.266 0.233 Period 9 0.914 0.837 0.766 0.703 0.645 0.592 0.500 0.424 0.361 0.308 0.263 0.225 0.194 Period 10 0.905 0.820 0.744 0.676 0.614 0.558 0463 0.386 0.322 0.270 0.227 0.1910.162 Period 11 0.896 0.804 0.722 0.650 0.585 0.527 0.429 0.350 0.287 0237 0.195 0.162 0.135 Period 12 0.887 0.788 0.701 0.625 0.557 0.497 0.397 0.319 0.257 0.208 0.168 0.137 0.112 Period 13 0.879 0.773 0.681 0.601 0.530 0.469 0.368 0.290 0.229 0.182 0.145 0.116 0.093 Period 14 0.870 0.758 0.661 0.577 0.505 0.442 0.340 0.263 0.205 0.160 0.125 0.099 0.078 Period 15 0.861 0.743 0.642 0,555 0.481 0.417 0.315 0.239 0.183 0.140 0.108 0.084 0.065 Period 20 0.820 0673 0.554 0.456 0.377 0.312 0.215 0.149 0.104 0.073 0.051 0.037 0.026 Period 25 0.780 0.610 0.478 0.375 0.295 0.233 0.146 0.092 0.059 0.038 0.024 0.016 0.010 Period 30 0.742 0.552 0.412 0.308 0231 0.174 0.099 0.057 0.033 0.020 0.012 0.007 0.004 Period 40 0.672 0.453 0.307 0.208 0.1420.097 0.046 0.022 0.011 0.005 0.003 0.001 0.001 Print Done Question 1, E12-56B (si... work: Homewo... HW Score: 0%, 0 of 10 point O Points: 0 of 10 Part 1 of 4 Valley, a popular X expa Data Table to view the expan to view the prese o view the future Assume that Bear Valley's managers developed the following estimates concerning a planned expansion to its Blizzard Park Lodge (all numbers assumed): nts. .. at is the project's . in .. sent value of the expansion 1 Number of additional skiers per day 117 Average number of days per year that weather conditions allow skiing at Bear Valley 156 Useful life of expansion (in years) 9 Average cash spent by each skier per day .........$ 237 Average variable cost of serving each skier per day . $ 132 Cost of expansion $ 8,000,000 Discount rate 10% Assume that Besar 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 nine-year life. It has already calculated the average annual net cash inflow per year to be $1,916,460. . Print Done