Consider how Bear Valley, a popular ski resort, could use capital budgeting to decide whether the $8 million Brook 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 factor 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 - Data table estimates concerning a pareu expansion LO TIS DIOUK Park Louge (all numbers assumed): Number of additional skiers per day...... 121 Average number of days per year that weather conditions allow skiing at Bear Valley.. 162 Useful life of expansion (in years).... 8 Average cash spent by each skier per day........S 239 Average variable cost of serving each skier per .S 135 Cost of expansion. $ 8,000,000 Discount rate.... 10% Assume that Bear 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 eight-year life. It has already calculated the average annual net cash inflow per year to be $2,038,608. day Print Done 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 $ Is the investment attractive? Why? The expansion is project because its NPV is 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 $ Is the investment attractive? Why? Without a residual value, the expansion because of the project's NPV