Consider how Flint Valley, a popular ski resort, could use capital budgeting to decide whether the $$8\mathrm{.}5$ million Spring 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 future value annuity factor table.$)$

$($Click the icon to view the present value 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 wh

Calculate the net present value of the expansion. $($Round your answer to the neares

Net present value of expansion

Requirements

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?

Data table

Assume that Flint Valley's managers developed the following estimates concerning a planned expansion to its Spring Park Lodge $($all numbers assumed$)$:

$\backslash$table$[[\backslash$table$[[$Number of additional skiers per day...........$],[$Average number of days per year that weather$],[$conditions allow skiing at Flint Vallov$]],\backslash$table$[[118],[157]]],[$Useful life of expansion $($in years$).,8],[$Average cash spent by each skier per day......... $$,242],[$Average variable cost of serving each skier per day $.$ $$,134],[$Cost of expansion......,$0,000],[$Discount rate $.................................,10\%$