Consider how Cherry Valley, a popular ski resort, could use capital budgeting to decide whether the $9 million River 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 valuo 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 $ Requirements 1. What is the project's NPV? Is the investment attractive? Why or why not? 2. Assume the expansion has no residual value. What is the project's NPV? Is the investment still attractive? Why or why not? WASI Westment Reference -X Data Table Assume that Cherry Valley's managers developed the following estimates concerning a planned expansion to its River Park Lodge (a numbers assumed) Present Value of Annuity of $1 Periods 1% 2% 3% 4% 5% 6% 8% 10% 12% 14% 16% 18% 20% 1 0.990 0 9800 971 0.962 0.952 0943 0.926 0.000 0.893 0.877 0.362 08470.833 2. 1970 1942 1913 1886 1.850 1833 1783 1736 1.000 1.6471 605 1506 1528 3 2.9412.884 2 820 2.775 2.7232 6732577 2.487 2.40223222 246 2 174 2. 106 4 3 902 3.808 3.717 3630 3.546 3.465 3.312 3.17030372 9142798 2 600 2.580 5 4.853 4.713 4580 4.452 4.329 4 212 3.903 3.7913.605 3.433 3 2743.1272 091 6 5.795 5601 5 417 5242 5.076 4.917 4.623 4355 4.111 3 889 3.685 3.498 3 326 7 6.728 6.472 6230 6.002 5.786 5.582 5.206 4.8684564 4288 4030 3.812 3 605 8 7.652 7.325 7,020 67336.463 6210 5.747 5.335 4.968 4630 43444.078 3837 9 8.566 8.162 7.786 7435 7 1086 802 6 247 5.759 5328 4.946 4.6074 303 4031 10 9.471 8.083 8.530 8.1117.7227.360 6.710 6.145 5.650 5.216 4.833 4.4944 192 11 10.368 9.787 9 253 8.760 8.3007 887 7.139 6 495 5938 5.453 5029 4656 4327 12 11.255 10 575 9 9549 385 880383847536 6.814 6 194 5.660 5.197 4.7934439 13 12. 134 11 348 10 635 9.000 9.394 8.853 7 904 7103 6.424 5842 5 342 4910 4.533 14 13.004 12 106 11 296 10 563 9 899 295 8 244 73676 628 6.002 5 468 5008 4611 15 13.865 12.849 11.938 11.118 10 380 9.712 8.559 7.606 6.811 6.142 5.575 5.0024.675 20 18 046 16 351 14 877 13 590 12 462 11 470 9.818 8.514 7:469 6.623 5.929 5.3534,870 25 22 023 19.523 17.41315.622 14.094 12783 10.675 9.077 7.8436.8736 0975.467 4.948 30 25 808 22 396 19 600 17 292 15 372 13 765 11 258 9 427 805570036.1775.517 4.979 40 32 835 27 355 23 115 19.793 17 159 15 046 11 925 9 779 8 244 7.105 6 233 5.548 4.997 Number of additional skiers per day 110 Average number of days per year that weather conditions allow skiing at Cherry Valley 156 Useful life of expansion in years) 10 Average cash spent by each skier per day $ 247 Average variable cost of serving each skier per day $ 144 Cost of expansion $9.000.000 Discount rate 12% Assume that Cherry Valley uses the straight-line depreciation method and expects the lodge expansion to have a residual value of $800,000 at the end of its ten your life. It has already calculated the average annual net cash inflow per year to be $1,912,092 Retence Reference Periods 3 1000 2030 3001 1000 2.000 3.000 4 122 5.204 1000 2010 3030 400 5 101 6152 7214 326 1000 2040 3.122 4240 51 5 0 7 8 5 5.600 7662 1334 9. 700071 10 150 11454 7896 9214 10 SAS 12 000 Future Value of Annuity of $1 6 6% 10% 12 10% 16% 2018 1600 1000 1000 1000 1000 2050 2000 200 2.100 2120 2.140 2100 2150 2200 3153 3184 3246 3310 3.374 3:40 350 31640 4310 4 375 4.500 4641 500 5215 5300 5.520 6350 8610 8872 7154 6915 7.716 8115 99 8.16 8.394 8923 10089 10730 12.10 12916 07 10.637 114 1250 1323 1420 15 16410 11 11.491 135 1471 16 005 17519 19 05 20.750 1257 13151 1754 19337 25950 14972 20655 23.00 25733 28 755 32.150 15 917 56 570 13977 21354 24 133 27.271 30.350 54931 3581 17.713 21.495 244523 28020 35.786 6221 1950 21015 24 215 27978 32303 43.2 50 18 52100 21.579 232 27 153 3172 37200 5100 33 00 357 3576 57 275 7205 91 025 115 30 146 1066 47727 54 305 73.100 56 347 133 334 181871 240 216 34260341 56430 79058 113283 164 494 241333356787 550312 74,510 1201001470259 OST21709113470054162137305 Present Value of $t Periods 15 2 50 185 185 295 00 07 20952301000000 2 150 00 0800 085 030 070718 0604 ON 880095408400794 0751 07120875 064 0600 0573 4 096 155 3 700 750 502 052 051604 5 906 OMOTI OTET OD 1 050 041 0400 5 700 705 0630564 0 0 0 7 0.30 6050 5830 513 042 0400 3540314027 3 0540 404 0351 305 02060230 9 0914 7030645 5000 1301 03080203 02250 100 10 0.805 820 744 0600014 550 0.163 002927 191019 0 0 34 0 722 069 150 02 0237 0.95 160 135 12 DUST 0700 701 to 557 0 7 0 0 319 0257 02000137112 13 0 870 07736810 001530 0.400 0.38 0 20 0 2290116 000 0 870 0 75 1057 0.505 04 03 02 0205 00 25 000 15 0161 01 02 05550451 0417 0.315 230 100 100 1000000 20 082006304045637 0 312 02150 1000 10000/30051 07.000 25 0780 061004780375 0295 023 010 0000000000000000100010 07202041203080231 01 0.0000057 000 000 001200070004 40 0672050 200 1000046 0.0020011 0005000300000 213 755 10.950 12 103 13412 14580 15 074 17290 24 297 11 12 10.40 11.567 1200 136 15020 16627 0CC 14 14 1600 15 618 17 036 159 22 10 23 24 OL 40 560 0400 41 575 7501 56085 95025 Reference - X Reference Future Value of 1 Periods 1020 1040 396 1030 4 1040 105 1.050 12 1010 1 020 1030 1 041 1051 1080 1165 1.200 1001 1191 11 1.050 1 100 1 158 1216 1270 1 340 1581 4 5 1170 1 217 1.255 1 310 1469 1338 1.410 1504 1996 1.194 1230 1207 7 8 1 052 1 02 1 083 1 094 1 105 1 110 1.127 1587 1714 1351 900 2 150 10 1 104 1.126 1 149 1 172 1 196 1 210 1 243 1200 1.294 1319 1 340 1.486 1641 10 11 12 1551 1.629 1750 1790 Present of 11 Periode 1% 2% 3% 4% 5% 10 1145 16 1 20% 1 0 0 0 0 0 0 0 0 2 0900051 0905 907 1900 ST TO TWO 3 0.9T1092 0915 3090354 0.40 0.794 0751 712 675 06416005 0901 1030000230 0.56 0.8 0.36382284 00 01 02 0.962 300337.7900765 0.705 0.000 0 564 SOT 500 600 300 7 0.003 0.871 08137507 06 05 051304520 400035403140 0.03 0.853 731 067 0 0 540 046704040 350 300 2000 233 0914 ST 200 55 500 500 400 3500 3080203 02250 104 10 0.505 0.20 0.744 676 00145045110 2020 221 1910 162 11 09001040722 650 000 350 207 0237 0155 016 0155 12 0.7 0.70701056737 030 0.250.2000 1600 1370 112 13 0.879 0.77306610001 050302000 2200 1620 1450 115 000 1 0870 75 6610572 050502340023 0.205 100 125 000000 15 D. OTO0055 0410417 3150 200 140 1000000005 0.820 067305540456 0312 021510400730051 DOT 0.006 250 760061004750 375 0295 02010032 0.0003 004 00150010 30 0702 0562 41203080231 0174 005703300200120004 0672 0453 00 OO OOO OD 00220011 0005000300010001 10% 18 18 20% 1 100 1.120 1140 1 160 110 1250 1200 124 1300 1 1640 1.005 1643 1125 1 054 1574 160 1939 2014 1611 17 1925 2100 2250 2 1.772 1074 2195 2056 2.700 2.986 1949 2.211 2502 2105 3.115 2144 2475 2.853 3.75 4300 2358 2773 4435 5 100 3303 310 2504 3707 5734 5192 2.853 5117 6176 7430 3130 3.805 50 7283 8910 3.452 4303 5402 3500 10.000 1960 1280 4.177 5.414 7.134 9200 1914 15407 6.721 13743 19.051 27333831 10835 17 000 40874 2600 95.300 17440 29.960 50 950 1550 143371 237376 4525993 0511378721 750 37810 159 1600 1.665 172 1901 EDHE RAR 10.17 23 2518 2720 2997 3112 1791 19 2012 2133 2201 29 3207 4.292 5743 102 1161 15 1513 1.550 1 300 2004 2.427 32 1980 2079 264 1220 2.191 2666 1348 19 1511 6148 100 217 2200 7040