Consider how Fint Valley, a popular ski resort, could use capital budgeting to decide whether the $9 milion Autumn 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 sign for a negative not present value.) Net present value of expansion Data Table Assume that Flint Valley's managers developed the following estimates concerning a planned expansion to its Autumn Park Lodge (all numbers assumed): ad SV pre Number of additional skiers per day 123 Average number of days per year that weather conditions allow skiing at Flint Valley 158 Useful life of expansion (in years) 10 Average cash spent by each skier per day $ 245 Average variable cost of serving each skier per day . $ 144 Cost of expansion $ 9,000,000 Discount rate 14% Assume that Flint 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-year life. It has already calculated the average annual net cash inflow per year to be $1,962,834. nswe Print Done Clear All MacBook Periods 1% 2% 3% 4% 5% 6% 8% 10% 12% 14% 16% 18% 20% Period 1 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 Period 2 1.970 1.942 1.913 1.886 1.859 1.833 1.783 1.736 1.690 1.6471.605 1.566 1.528 Period 3 2.941 2884 2.829 2.775 2.723 2.673 2.577 2.487 2.402 2.322 2246 2.174 2.106 Period 4 3.902 3.808 3.717 3.630 3.546 3.465 3.312 3.170 3.037 2.914 2.798 2.690 2.589 Period 5 4.8534.713 4.580 4.452 4.329 4.212 3.993 3.791 3.605 3.433 3.274 3.127 2.991 Period 6 5.795 5.601 5.417 5.242 5.076 4.917 4.623 4355 4.111 3.889 3.685 3.498 3.326 Period 7 6.728 6.472 6.230 6.0025.786 5.5825.206 4.868 4.564 4.288 4.039 3.812 3.605 Period 8 7,852 7.325 7.020 6.733 6.483 6.210 5.747 5,335 4.968 4.639 4,344 4.078 3.837 Period 9 8.566 8.162 7.786 7.4357.468 6.8026.247 5.759 5.328 4.946 4,607 4.303 4.031 Period 10 9.471 8.983 8.530 8.1117.722 7.360 6.710 6.145 5.6505.216 4.833 4.494 4.192 Period 11 10.368 9.787 9.2538.760 8.306 7.887 7.139 6.495 5.938 5.453 5.029 4.656 4.327 Period 12 11 255 10.575 9.954 9.385 8.863 8.384 7.536 6.814 6.194 5.660 5.1974.793 4.439 Period 13 12.134 11.348 10.6359.986 9.3948.853 7.904 7.103 6.424 5.842 5.342 4.910 Period 14 13.004 12.106 11.296 10.563 9.899 9.295 8.244 7.367 6.628 6.002 4.533 Period 15 13.865 12.849 11.938 11.118 10.3809.7128.559 7.6066.811 6.142 5.468 5.008 4.611 5.575 5.092 4.675 Period 20 18.046 16.351 14.877 13.590 12462 11.470 9.818 8.514 7.4696.623 5.929 Period 25 22.023 19.523 17 413 15.622 1409412.783 10.675 9.077 7.8436.873 6.097 5353 4.870 Period 30 25.808 22 396 19.600 17.292 15 372 13.785 11258 9.4278.055 7.003 5.467 4.948 Period 40 32,835 27 355 23.115 19.793 17.15915046 11.925 9.779 8.244 7.105 6.177 5.517 4979 6.233 5.548 4.997 cil Print Done MacBook 30 aco DOO 44 FS Dll FB 9 % A 4 & * 5 6 7 8 9 ) 0 R T Y I 0 14% 7.442 Future Value of Annuity of $1 Periods 1% 2% 3% 4% 5% 6% 8% 10% 12% 16% 18% 20% Period 1 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 Period 2 2.010 2.020 2030 2040 2.050 2.060 2.080 2.100 2.120 2.140 2.160 2.180 2200 Period 3 3.030 3.060 3.091 3.122 3.153 3.184 3.246 3.310 3.374 3.440 3.506 3.572 3.640 Period 4 4.060 4.122 4.1844.246 4.310 4.375 4.506 4.641 4.779 4.921 5.066 5.215 5.368 Period 5 5.101 5.204 5.309 5.416 5.526 5.637 5,867 6.105 6.353 6.610 6.877 7.154 Period 6 6.152 6.308 6.468 6.633 6.802 6.975 7.336 7.716 8.115 8,536 8.977 9.442 9.930 Period 7 7214 7434 7.8627.898 8.142 8.394 8.923 9.487 10.089 10.730 11.414 12.142 12.916 Period 8 8.286 8.583 8.892 92149.549 9.897 10.637 11.436 12.300 13.233 14.240 15.327 16.499 Period 9 9.369 9.755 10.159 10.583 11.027 11491 12.488 13.579 14.776 16.085 Period 10 10.452 10.950 11.464 12.006 12.578 13.181 14.487 15.937 17.549 17519 19.086 20.799 19.337 21,321 23.521 25.959 Period 11.567 12.46912808 13.486 14 207 14.972 16.645 18.531 20.655 23.045 25.733 Period 12 12 683 13.412 14.192 15.026 15917 16.870 18.977 21.384 24.133 28.755 32.150 Period 13 13 809 14.680 15.818 16.627 17.713 18.882 21 495 24.523 28.029 27 271 30.850 34.931 39.581 Period 14 14947 15974 17.086 18292 19.589 21.015 24 215 27 975 32.393 32.089 36.788 42219 48.497 Period 15 16.097 17 293 1850420024 21.579 23.276 2715231772 37.280 37.581 43.672 50 818 59. 196 43.842 51 660 60.965 Period 20 22019 24297 26.870 29.77833066 36.786 45.76257.275 72.052 72035 Period 25 28245 32.000 36.459 41546 47727 54865 73.106 98.347 133,334 181.871 91.025 115 380 146 828 186 688 Period 30 3478540568 47 575 56.085 65439 79.058 113.283 164.494 241 333 356.787 249 214 342.603 471.981 530-312790.948 1.181.882 Print Done MacBook 80 13 888 od 76 DO $ VO 4 5 6 & 7 00 9 0 R T Y U 1 F G H J value anny Present Value of $1 Jalue annuit Periods 1% 2% 3% 4% 5% 6% 8% 10% 12% 14% 16% 18% 20% Period 1 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 Period 2 0.980 0.961 0.943 0.925 0.907 0.890 0.8570.826 0.797 0.769 0.743 0.7180.694 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 SNPV? Is the Period 4 0.961 0.924 0.888 0.855 0.823 0.792 0.735 0.6830.636 0.592 0.5520.516 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 me expansion Period 6 0.942 0.888 0.8370790 0.746 0.705 0.630 0.564 0.507 0.456 0.410 0.370 0.335 Period 7 0.933 0.871 0.8130760 0711 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 0.4040.3510.305 0.266 0233 Period 9 0.914 0.837 0.766 0.703 0.6450.5920.500 0.424 0.361 0.308 0.263 0.225 0.194 Period 10 0.905 0.820 0.744 0.678 0.614 0.558 0.463 0.386 0.322 0.270 0.227 0.191 0.162 Period 110.896 0.804 0.722 0.650 0.585 0.527 0.429 0.350 0.287 0.237 0.1950.162 0.135 Period 120.887 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 130879 0.773 0.681 0.601 0.530 0.469 0.368 0.290 0.229 0.182 0.145 0.116 0.093 Period 140.8700.758 0.661 0.577 0.5050442 0.340 0.263 0.205 0.160 0.125 0.0990.078 Period 15 0.861 0.743 0.642 0.555 0.4810417 0.315 0.2390.183 0.1400.1080.084 0.065 Period 20 08200.673 0.554 0.456 0.377 0.312 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 0231 0.1740.099 0.067 0.033 0.0200.012 0.007 0.004 elds and then cl Print Done Future Value of $1 Periods 1% 2% 3% 4% Period 1 1.010 1.020 1.030 1.040 Period 2 1.020 1.040 1.061 1.082 Period 3 1.030 1.061 1.093 1.125 Period 4 1.041 1.082 1.126 1.170 Period 5 1.051 1.104 1.159 1.217 Period 6 1.062 1.126 1.194 1.265 Period 7 1.072 1.149 1.230 1.316 Period 8 1,083 1.172 1.267 1.369 Period 9 1.094 1.195 1.305 1423 Period 10 1.105 1.219 1.344 1.480 Period 11 1.116 1.243 1.384 1.539 Period 12 1.127 1.268 1.426 1.601 Period 13 1.138 1.294 1.469 1.665 Period 14 1.149 1.319 1.513 1.732 Period 15 1.161 1.346 1.558 1.801 Period 20 1.220 1.486 1 806 2.191 Period 25 1.282 1.641 2.094 2.666 Period 30 1.348 1.811 2427 3.243 the 5% 6% 8% 10% 12% 14% 16% 18% 20% 1.050 1.060 1.080 1.100 1.120 1.140 1.160 1.180 1.200 1.103 1.124 1.166 1.210 1.254 1.300 1.346 1.392 1.440 1.158 1.191 1.260 1,331 1.405 1.482 1.561 1.643 1.728 1.216 1.262 1.360 1.464 1.574 1.689 1.811 1.939 2.074 1.276 1.338 1.469 1.611 1.762 1.925 2100 2288 2.488 1.340 1.419 1.587 1.772 1.974 2.195 2436 2700 2986 1.407 1.504 1.714 1.949 2211 2.502 2.826 3.185 3.583 1.477 1,594 1.851 2.144 2476 2853 3.278 3.759 4.300 1.551 1.689 1.999 2.358 2.773 3.252 3.803 4.435 5.160 1.629 1.791 2.159 2.594 3.108 3.707 4.411 5.234 6.192 1.710 1.898 2.332 2.853 3.479 4.226 5.117 6.176 7.430 1.796 2012 2.518 3.138 3.896 4.818 5936 7.288 8.916 1.886 2.133 2.720 3.452 4.363 5.492 6.886 8.599 10.699 1.980 2.251 2.937 3.797 4.887 6.261 7.988 10.147 12.839 2079 2.397 3.172 4.177 5.474 7.138 9.266 11.974 15.407 2.653 3.207 4.661 6.727 9.646 13.743 19.461 27.393 38 338 3.386 4.292 6.848 10.83517.000 26.462 40.874 62.669 95 396 5.743 10.06317449 29.960 50.950 85.850 143371 237.376 Print Done Che