Consider how Cherry Valley$,$ a popular ski$$ resort, could use capital budgeting to decide whether the $ $9$ million Autumn Park Lodge expansion would be a good investment.

What is the$$ project's NPV$?$ Is the investment$$ attractive? Why or why$$ not?

Assume the expansion has no residual value. What is the$$ project's NPV$?$ Is the investment still$$ attractive? Why or why$$ not?