Consider how Cole Valley Spring Park Lodge could use capital budgeting to decide whether the $12,000,000 Spring Park Lodge expansion would be a good investment. Assume Cole Valley's managers developed the following estimates concerning the expansion: (Click the icon to view the estimates.) i (Click the icon to view additional information.) Calculate the net present value of the expansion. (Enter any factor amounts to three decimal places, X.XXX. Round to the nearest whole dollar.) Net Cash Annuity PV Factor (i=12%, n=10) PV Factor (i=12%, n=10) Present Value Inflow Years 1-10 Present value of annuity. 10 0 Present value of residual value Total PV of cash inflows. Initial investment Net present value of expansion The expansion is project because its NPV is (Click the icon to view Present Value of $1 table.) (Click the icon to view Present Value of Ordinary Annuity of $1 table.) What is the project's NPV (round: nearest dollar)? Is the Investment attractive? Why or why not? Enter any number in the edit fields and then continue the next question. i Data Table Number of additional skiers per day Average number of days per year that weather conditions allow skiing at Cole Valley Useful life of expansion (in years) Average cash spent by each skier per day Average variable cost of serving each skier per day Cost of expansion Discount rate Print Done 122 skiers 147 days 10 years 240 77 12,000,000 12% More Info Assume that Cole 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 ten-year life. They have already calculated the average annual net cash inflow per year to be $2,923,242. Print Done Reference Periods 1% 2% 0.990 0.980 0.980 0.961 0.971 0.942 0.961 0.924 0.951 0.906 0.942 0.888 0.837 0.790 0.933 0.871 0.813 0.760 0.923 0.853 0.789 0.731 0.914 0.837 0.766 0.703 0.905 0.820 0.744 0.676 0.614 0.558 0.508 2 3 45 678910 112 13 14 15 16 17 18 19 0.896 0.804 0.887 0.788 0.879 0.773 0.758 0.743 0.870 0.861 0.853 0.844 0.836 0.728 0.714 0.700 Present Value of $1 3% 4% 5% 6% 7% 8% 9% 12% 14% 15% 16% 18% 20% 0.971 0.962 0.952 0.943 0.926 0.833 0.935 0.943 0.925 0.907 0.890 0.873 0.857 0.915 0.889 0.864 0.840 0.816 0.794 0.772 0.888 0.855 0.823 0.792 0.763 0.735 0.708 0.863 0.822 0.784 0.747 0.713 0.681 0.650 0.194 10% 0.917 0.909 0.893 0.877 0.870 0.862 0.847 0.842 0.826 0.797 0.769 0.756 0.743 0.718 0.694 0.751 0.712 0.675 0.658 0.641 0.609 0.579 0.683 0.636 0.592 0.572 0.552 0.516 0.482 0.621 0.567 0.519 0.497 0.476 0.437 0.402 0.746 0.705 0.666 0.630 0.596 0.564 0.507 0.456 0.432 0.410 0.370 0.335 0.711 0.665 0.623 0.583 0.547 0.513 0.452 0.400 0.376 0.354 0.314 0.279 0.677 0.627 0.582 0.540 0.502 0.467 0.404 0.351 0.327 0.305 0.266 0.233 0.645 0.592 0.544 0.500 0.460 0.424 0.361 0.308 0.284 0.263 0.225 0.463 0.422 0.386 0.322 0.270 0.247 0.227 0.191 0.722 0.650 0.585 0.527 0.475 0.429 0.388 0.350 0.287 0.237 0.215 0.195 0.162 0.701 0.625 0.557 0.497 0.444 0.397 0.356 0.319 0.257 0.208 0.187 0.168 0.137 0.112 0.681 0.601 0.530 0.469 0.415 0.368 0.326 0.290 0.229 0.182 0.163 0.145 0.116 0.093 0.661 0.577 0.505 0.442 0.388 0.340 0.299 0.263 0.205 0.160 0.141 0.125 0.099 0.078 0.417 0.362 0.315 0.275 0.239 0.183 0.140 0.123 0.108 0.084 0.065 0.394 0.339 0.292 0.252 0.218 0.163 0.123 0.107 0.093 0.071 0.054 0.513 0.436 0.371 0.317 0.270 0.231 0.198 0.146 0.108 0.093 0.080 0.060 0.045 0.494 0.416 0.350 0.296 0.250 0.212 0.180 0.130 0.095 0.081 0.069 0.051 0.038 0.396 0.331 0.277 0.232 0.194 0.164 0.116 0.083 0.070 0.060 0.043 0.031 0.162 0.135 0.642 0.555 0.481 0.623 0.534 0.458 0.605 0.587 0.570 0.475 0.828 0.686