Consider how Flint Valley, a popular ski resort. could use capital budgeting to decide whether the $8 million Stream Park Lodge expansion would be a good investment 2 (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 80 Question Help vould be a good investment. i Data Table X Assume that Flint Valley's managers developed the following estimates concerning a planned expansion to its Stream Park Lodge (all numbers assumed): gative .EE . Number of additional skiers per day. 121 Average number of days per year that weather conditions allow skiing at Flint Valley. 163 Useful life of expansion (in years) 8 Average cash spent by each skier per day.... $ 239 Average variable cost of serving each skier per day . $ 136 Cost of expansion.. $ 8,000,000 Discount rate. 10% Assume that Flint Valley uses the straight-line depreciation method and expects the lodge expansion to have a residual value of $850,000 at the end of its eight-year life. It has already calculated the average annual net cash inflow per year to be $2,031.469. ... Print Done the $8 million Stream Park Lodge expansion would be a good investmes w the expansion estimates.) w the present value annuity factor table.) = (Click the icon to view the present value factor table.) w the future i Reference - the projed t value of 2% present value pansion Present Value of Annuity of 51 Periods 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 1.647 1.605 1.566 1.528 Period 3 2.941 2.884 2.829 2.775 2.723 2.673 2577 2.487 2.4022.322 2.246 2.174 2.106 Period 4 3.902 3.808 3.717 3.630 3.546 3.465 3.312 3.1703.037 2.914 2.798 2.690 2.589 Period 5 4.853 4.713 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 5.2425.0764.917 4.623 4.355 4.111 3.889 3.6853498 3.326 Period 76.728 6.472 6.230 6.0025.786 5.5825.206 4.868 4.564 4.288 4.039 3.812 3.605 Period 8 7.652 7.325 7.020 6.7336.463 6210 5.747 5.335 4.968 46394.344 4.078 3.837 Period 98.566 8.1627.786 7.435 7.108 6.8026.247 5.7595.3284946 4.607 4303 4.031 Period 10 9.471 8.983 | 8.530 8.111 77227.360 6.710 6.145 5.6505.216 4.833 4.494 4.192 Period 11 10.3689.787 9.2538.760 8.3067.887 7.139 6.495 5.938 5.453 5.029 4.656 4.327 Period 12 11.255 10.575 9.954 9.3858.863 8.384 7.536 6.814 6.1945.660 5.197 4.793 4.439 5.342 Period 1312.134 11.348 10.635 9.988 9.394 8.853 7.904 7.1036.424 5.842 4.910 4.533 5.468 Period 14 13,004 12.106 11.296 10.563 9.899 9.2958.244 7.367 6.628 6.002 5.008 4.611 6.142 5.575 5.092 4.675 Period 15 13.865 12.849 11.938 11.11810.380 9.7128.5597606 6.811 6.623 5.929 5.353 4.870 Period 20 18.046 16.351 14.877 13.5901246211470 9.818 8.5147469 6.097 5.467 4.948 Period 25 22.023 19.523 17.413 15.622 14.094 12.783 10.675 9.077 7.8436.873 6.177 5,517 4.979 Period 30 25.808 22.396 19.600 17 292 15.372 13.765 112589.4278.055 7003 6.233 5,548 4.997 Period 40 32.835 27355 23. 115 19.793 17.159 15.046 11.9259.7798.244 7105 Print Done (Click the icon to view the present value factor table.) actor table.) tor table.) Reference estment att Present Value of $1 ind your an Periods 2% 3% 4% 5% 6% 8% 10% 12% 14% 16% 18% 20% Perlod 1 0.990 0.9800.971 0.962 0.952 0.943 0.926 0.909 0.893 0.877 0.862 0.847 0.833 Perlod 2 0.980 0.961 0.943 0.925 0.907 0.890 0.857 0.626 0.797 0.769 0.743 0.718 0.694 Period 3 0.971 0.942 0.915 0.8890.864 0.840 0.794 0.751 0712 0.675 0.641 | 0.609 0.579 Period 4 0.961 0.924 0.888 0.855 0.823 0.792 0.735 0.683 0.636 0.592 0.552 0.516 0.482 Period 5 0.951 0.906 0.863 0.822 0.784 0.747 0.681 0.621 0.5670.5190.4760437 0.402 Period 6 0.942 0.888 0.837 0.790 0.746 0.705 0.630 0.564 0.507 0.456 0.410 0.370 0.335 Period 7 0.933 0.871 0.813 0.760 0.711 0.665 0.583 0.513 0.452 0.400 0.364 0.3140.279 Period 8 0.923 0.853 0.789 0.731 0.677 0.627 0,540 0.467 0.404 03510.305 0.266 0.233 Period 9 0.914 0.837 0.766 0.703 0.645 0.5920.500 0.424 0.361 0.308 0.263 0.225 0.194 Period 10 0.905 0.820 0.744 0.676 0614 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 0237 0.196 0.162 0.135 Period 12 0.8870.788 0.701 0.6260.557 0.497 0.397 0.319 0.257 0.2080.168 0.137 0.112 Period 130.879 0.773 0.681 0.601 0.5300469 0.368 0.290 0.229 0.182 0.145 0.116 0.093 Period 14 0.870 0.758 0.661 0.577 0.505 0.442 0.340 0.263 0.205 0.160 0.125 0.099 0.078 Period 15 0.861 0.743 0.642 0.555 0.481 0.417 0.315 0.239 0.183 0.140 0.108 0.084 0.065 Period 200.820 0.673 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 0.0590.038 0.024 0.016 0.010 Period 30 0.742 0.552 0.412 0.308 0.231 0.174 0.099 0.057 0.033 0.020 0.012 0.0070004 Period 40 0.872 0,453 0.307 0.208 0.142 0,097 0.046 0.022 0.011 0.005 0.003 0.001 0.001 Print Done actor table.) Click the icon to view the present value factor table.) Ror i Reference astr und Future Value of Annulty of $1 Periods 2% 3% 4% 5% 6% 8% 10% 12% 14% 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 2.030 2.040 2.050 2.060 2.080 2.100 2.120 2.140 2.160 2180 2.200 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 4.184 4246 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 7.4 Perlod 6 6.152 6.308 6,468 6.633 6.802 6.975 7.336 7.716 8.115 8,536 8977 9.442 9.930 Period 7 7214 7.434 7,662 7.898 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 9.214 9.549 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 11.491 12.488 13.579 14.776 16.085 17.519 19.086 20.799 Perlod 10 10.462 10.950 11464 12.006 12.578 13.181 14.48715,937 17.549 19.337 21.321 23,521 25.959 Period 11 11.567 12.169 12.808 13,486 14.207 14.972 16,645 18.531 20.655 23.045 25.733 28.756 32.150 Period 12 12.683 13.412 14.192 15.026 15.917 16.870 18.977 21.38424.133 27 271 30.850 34.831 39.581 Period 13 13.809 14.680 15.618 16.627 17.713 18.882 21.496 24.52328,029 32.089 36.786 42 219 48.497 Period 14 14.947 15.974 17.086 18.292 19.599 2101524.215 27.97532393 37.581 43.672 50.818 59.196 Period 15 16.097 17 293 18.599 20.024 21.579 23 276 27.152 31.772 37.280 43.842 51.660 72.035 60.965 Period 20 22.019 24.297 26.870 29.778 33,066 36.786 45.762 57.275 72.052 91 025 115 380 146.628 188.688 342.603 Period 25 249.214 471.981 28.243 32.03036.459 41.646 47.72754.865 73.106 98.347 133.334 181.871 34 785 40.568 47.575 56.085 66.439 79.058 113.283 164.494 241 333 356.787 530.312 Period 30 790.948 1.181.882 Period 40 48.886 60.40275 401 95.026 120.800 154.762259.057442 593 767,091 1,342.0252.360.7574,153.2137.343.858 Print Done Done use capital budgeting to decide whether the $8 million Stream Park Lodge expansion would be a good investment. factor table.) (Click the icon to view the present value factor table.) actor tabs Reference estmed Future Value of $1 ound ya Periods Period 1 Period 2 Period 3 Period 4 Period 5 Period 6 Period 7 Period 8 Period 9 Period 10 Period 11 Period 12 Period 13 Period 14 Period 15 Period 20 Period 25 Period 30 Period 40 1% 1010 1.020 1.030 1.041 1051 1,062 1.072 1.083 1.094 1.105 2% 1.020 1.040 1.061 1.082 1.104 1.126 1.149 1.172 1.195 1.219 3% 1.030 1.040 1.061 1.082 1.093 1.125 1.126 1.170 1.159 1217 1.1941.265 1.230 1.316 1.267 1.369 1305 1.423 1.344 1.480 1.384 1.539 1.426 1.601 1469 1.665 1.513 1.732 1.558 1.801 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 1254 1.300 1.346 1.392 1440 1.158 1.191 1.260 1.331 1.405 1.482 1.561 1.643 1728 1216 1.262 1.360 1.464 1.574 1.689 1.811 1.939 2.074 1276 1.338 1.469 1.611 1.762 1.925 2.100 2 288 2488 1.340 1.419 1,587 1.772 1.974 2.196 2.436 2.700 2986 1.407 1.504 1.714 1.949 2.211 2,502 2.826 3.185 3.583 1.477 1.594 1.851 2.144 2476 2.853 3.278 3.759 4300 1.561 1.689 1.999 2.358 2.773 3.252 3.803 4.435 5.160 1 629 1.791 2.159 2.594 3.106 3.707 4.411 5.234 6.192 1.710 1.898 2.3322853 3.479 4.226 5.117 6.176 7430 1.796 2012 2.518 3.138 3.896 4.818 5936 7.288 8.916 1.886 2.133 2720 3.452 4.363 5.492 6.836 8.599 10.699 1.980 2.261 2.937 3.797 4.887 6.261 7,988 10.147 12.839 2.079 2.397 3.172 4.177 5474 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 10.835 17 000 26.462 40,874 62.669 95.396 4.322 5.743 10.063 17.449 29.960 50.950 85.850 143371 237.376 7.040 10.286 21725 45.25993.051 188.884 378.721750.378 1469.772 1.116 1.127 1.138 1.149 1.161 1.243 1.268 1.294 1.319 1.346 1.220 1.282 1.348 1.489 1.486 1.641 1.811 2.208 1.806 2094 2427 3.262 2.191 2.666 3243 4.801 Print Donie -) (Click the icon to view the future value factor table.) attractive? Why or why not? answer to the nearest whole dollar. Use parentheses or a minus sign for a negative net present value.) 0 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? Print Done