Consider how Bear Valley, a popular ski resort, could use capital budgeting to decide whether the $8.5 million 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 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 for a negative Net present value of expansion de whether the $8.5 million Blizzard Park Lodge expansion would be a good inve Data table Assume that Bear Valley's managers developed the following estimates concerning a planned expansion to its Blizzard Park Lodge (all numbers assumed) Number of additional skiers per day.. 124 Average number of days per year that weather conditions allow skiing at Bear Valley 165 Useful life of expansion (in years) 8 Average cash spent by each skier per day..........$ 237 Average variable cost of serving each skier per day . $ 138 Cost of expansion... ..$ 8,500,000 Discount rate. 10% Assume that Bear Valley uses the straight-line depreciation method and expects the lodge expansion to have a residual value of $500,000 at the end of its eight-year life. It has already calculated the average annual net cash inflow per year to be $2,025,540. Print Done nce torta tab - stmer end yol Present Value of Annuity of $1 Periods 1% 2% 3% 4% Period 1 5% 6% 0.990 8% 0.980 0.971 0.962 0.952 0.943 0.926 0.909 0.893 0.877 0.862 0.847 10% 12% 14% 16% 18% 20% Period 2 1.970 1.942 1.913 1.886 1.859 1.833 0.833 Period 3 1.783 1.736 1.6901.6471605 2.941 2.884 2.829 2.775 2.723 2.673 2.577 2.487 2.402 2.322 2246 1.566 1.528 Period 4 3.902 3.808 3.717 3.630 2.174 2.106 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 2.589 3274 3.127 2.991 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 3.326 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 3.605 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 3.837 Period 9 8.566 8.1627.786 7.435 7.108 6.802 6.247 5.759 5.328 4.946 4.607 4.303 4031 4,494 Period 10 9.471 8.983 8.530 8.111 7.722 7.360 6.710 6.145 5.650 5.216 4.833 4.192 4.656 4.327 Period 11 10.368 9.787 9.253 8.760 8.306 7.887 7.139 6.495 5.938 5.453 5.029 5.660 5.197 4.793 4.439 Period 12 11.255 10.575 9.9549.385 8.863 8.384 7.536 6.8146.194 5.342 4.910 4.533 Period 13 12.134 11.348 10.635 9.986 9.394 8.853 7.904 7.103 6.424 5.842 5.468 5.008 4.611 6.142 5.575 5.092 Period 14| 13.004 12.106 11.296 10.563 9.899 9.295 8.244 7.367 6.628 6.002 4675 Period 15 13.865 12.849 11.938 11.118 10.380 9.712 8.559 7.606 6.811 6.623 5.929 5353 4870 6.097 4.948 Period 20 18.046 16.351 14.877 13.590 12.462 11.470 9.818 8.514 7.469 6.177 4.979 Period 25 22.023 19.523 17.413 15.622 14.094 12.783 10.675 9.077 7.843 6.873 4.997 Period 30 25.808 22 396 19.600 17.292 15.372 13.765 11.258 9.4278.055 7.003 5.467 5.517 5.543 7.105 6.233 Period 40 32.835 27.355 23.115 19.793 17.159 15.046 11,925 9.779 8.244 SN Periods Period Period 2 Period 3 Period 4 Periods OPEL 1170 1210 ect's NPV? is the inver of the expansion (Rou CH IN HE NIZ DIC OCEL WT HE WE 1% 1010 1020 10 104 1051 1002 1.072 1083 1,094 1.105 1.116 14:27 1.135 1.149 1161 1220 1.282 1.341 1480 Future Value of 10 2 4% 35 1020 ON % 1030 1040 1050 ON 125 145 1000 05 1040 20 TO 100 1061 LI 1082 1.100 126 1 1061 7200 1201254 1093 1125 1154 10 1191 12 1012 1200 131 1 1.120 14 120 1.104 1301464 1150 127 128 13 1514 TE 1930 1400 TH 12 3100 22 1126 2.AN 1.1941251540 14 110 1.12 22.00 1537 1407 2 1504 1714 LO 2210 1.1721217 202 203 13691477 15H18512144247 2050 1.15 1.305 1423 1551 188 1999 238 27733252 31 4415 1.210 1344 1480 1.620 1.701 2150 253106 3707 $234 he 124313847539 1.750 1.9 2.3 2.153 14 4220 117 EN 1260 1601 1.796 2012 2558 2139 48187290 124 1.469 18962.133 2720 345236 1319 1.513 1.732 1980 2201 20 3.797 461 7980 1348 1.558 2079 237 2.172 4.177 BUN 120 N 1 1456 1.806 2.191 2653 3.207 21.54. 270 1.641 20942.000 3.386 42926848 07602.02 1811 2427320 4322 1 570 10001 17422996050303.2001 2200 120 4.801 704010221752000 IMATI Period Period 7 Period Period 9 Period 10 Period 11 Period 12 Period 13 Period 14 Period 15 Period 20 Period 25 Period 30 Period 40 LP 14 RE HET w PEDO 107 estmer und you Present Value of $1 Periods 1% 2% 3% 4% 5% 6% Period 1 8% 10% 0.990 0.980 0,971 0.962 0.952 0.943 0.926 0.909 0.893 0.877 0.862 0.847 0.833 12% 14% 16% 18% 20% Period 2 0.980 0.961 0.943 0.925 0.907 0.890 0.8570.826 0.797 0.769 0.743 0.718 0.694 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 0.314 0.279 Period 8 0.923 0.853 0.789 0.731 0.677 0.627 0.540 0.467 0.404 0.351 0.305 0.266 0.233 Period 9 0.914 0.837 0.766 0.703 0.6450.592 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 0.463 0.386 0.322 0.270 0.227 0.191 0.162 Period 11 0.896 0.804 0.722 0.650 0.585 0.527 0.429 0.350 0.287 0.237 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 0.116 0.093 0.681 0601 0.530 0.469 0.368 0.290 0.229 0.182 0.145 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 0.2390.183 0.140 0.108 0.084 0.065 0.673 Period 20 0.820 0.554 0.456 0.377 0312 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 0.231 0.174 0,099 0.057 0,033 0.0200.012 0.007 0.004 Period 40 0.672 0.022 0.011 0.005 0.003 0.001 0.001 0.453 0.307 0208 0.142 0.097 0.046 V M 000000001 Z the project's NPV? Is then value of the expansion 3.30 SET WS UP 3 IDE) 0199 999 BOZI E ansion X2 CHE Periods where 1 25 3% Period 1600 10% 1h Period 7000 7001500130 SON 2 2010 2021 2030 2040 2050 200 200 1000 1000 Periods 3050 300 301 302 315 2100 2121 210 2.100 20 2200 Period 4.660 412 415 434 3.3 140 1500 4310 1572 Period 5 4.500 5101 5294 530 549 5596 100 520 52 610 SITY 7.194 Period 8802 6.95 Period 731715 15 724 74547662789 BAN PTT 9900 334 8.323 140 10000 11494 Period 12.10 IN 6.2658329214 2.54 10 ST 12.00 12 1424 Period 19 93009755 10.5 11 1149 12.45 17:59 199 Period 10 1000210.950 11.5 12.006 12:57 158 159 212 2321 25 Period 11 11 67 12.10 12.00 13.698.2014 972 546 28.055 25.73 287 Period 12 1260311412 4.2 15.020159171681018.97 213 2139 2222 2331 22 Period 13 13.8905458015698188271770313882 214 215 220 4548 Period 1414947 15941701922 19.50 2101 222 27573000 362 Period 15 16 00717280 10.500 20.0042159 23270 271 272 2720 361 115 380 M Period 20 22.01924.297 270207783301457215 2162 23 24 Period 25 20243 320036-459164138.347 13:34 Period 30.785405047575 16.03.05.2004 2003 Period 40 488080400 5.00 5.00 120.00 152 242.000 30.005 2004 SOT IS W CON