Consider how Cole Valley Waterfall Park Lodge could use capital budgeting to decide whether the $13,500,000 Waterfall 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.) (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 to nearest dollar)? Is the investment attractive? Why or why not? Calculate the net present value of the expansion. (Enter any factor amounts to three decimal places, X.XXX. Round to the nearest whole dollar.) Years Net Cash Inflow Annuity PV Factor PV Factor (i=14%, (i=14%, n=12) n=12) Present Value Data table Years 1 - 12 Present value of annuity Year 12 Present value of residual value Total PV of cash inflows Year 0 Initial investment Net present value of expansion Number of additional skiers per day 115 skiers Average number of days per year that weather conditions allow skiing at Cole Valley 149 days Useful life of expansion (in years) 12 years Average cash spent by each skier per day $ 237 Average variable cost of serving each skier per day 86 Cost of expansion 13,500,000 Discount rate 14% Print Done