Consider how Frost Valley, a popular ski resort, could use capital budgeting to decide whether the $$10$ million Waterfall 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 net present value.$)$

Net present value of expansion

Data table

$\backslash$table$[[\backslash$table$[[$Assume that Frost Valley's managers developed the following estimates$],[$concerning a planned expansion to its Waterfall Park Lodge $($all$],[$numbers assumed$)$:$]]],[$Number of additional skiers per day $..............,125],[\backslash$table$[[$Average number of days per year that weather$],[$conditions allow skiing at Frost Valley $.]],164],[$Useful life of expansion $($in years$)...............,10],[$Average cash spent by each skier per day. $........$ $$,243],[$Average variable cost of serving each skier per day $.$ $$,132],[$Cost of expansion $................,000],[$Discount rate $............................,12\%$