Consider how Frost Valley, a popular ski resort, could use capital budgeting to decide whether the $9.5 million Autur 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 a minus sign for a negative net present value.) Net present value of expansion $ 3660520 Data Table future le pare Assume that Frost Valley's managers developed the following estimates concerning a planned expansion to its Autumn Park Lodge (all numbers assumed): Number of additional skiers per day... 123 Average number of days per year that weather conditions allow skiing at Frost Valley 163 Useful life of expansion (in years)... 10 Average cash spent by each skier per day $ 247 Average variable cost of serving each skier per day 138 Cost of expansion 9,500,000 Discount rate... 10% Assume that Frost Valley uses the straight-line depreciation method and expects the lodge expansion to have a residual value of $600,000 at the end of its ten-year life. It has already calculated the average annual net cash inflow per year to be $2,185,341. Print Done i Reference Periods 1 2 3 4 5 6 c 7 9 10 Present Value of Annuity of $1 1% 2% 3% 4% 5% 6% 8% 10% 0.990 0.980 0.971 0.962 0.952 0.943 0.926 0.909 1.970 1.942 1.913 1.886 1.859 1.833 1.783 1.736 2.941 2.884 2.829 2.775 2.723 2.673 2.577 2.487 3.902 3.808 3.717 3.630 3.546 3.465 3.312 3.170 4.853 4.713 4.580 4.452 4.329 4.212 3.993 3.791 5.601 6.242 4.91 4.623 1.355 6.728 6.472 6.230 6.002 5.786 5.582 5.206 4.868 7.652 7.325 7.020 6.733 6.463 6.210 5.747 5.335 8.566 8.162 7.786 7.435 7.108 6.802 6.247 5.759 9.471 8.983 8.530 8.111 7.722 7.360 6.710 6.145 10.368 9.787 9.253 8.760 8.306 7.887 7.139 6.495 11.255 10.575 9.954 9.385 8.863 8.384 7.536 6.814 12.134 11.348 10.635 9.986 9.394 8.853 7.904 7.103 13.004 12.106 11.296 10.563 9.899 9.295 8.244 7.367 13.865 12.849 11.938 11.118 10.380 9.712 8.559 7.606 18.046 | 16.351 14.877 13.590 12.462 11.470 9.818 8.514 22.023 19.523 17.413 15.622 14.094 12.783 10.675 9.077 25. 19.600 17.2 15.372 765 11.258 427 32.835 27.355 23.115 19.793 17.159 15.046 11.925 9.779 12% 14% 16% 18% 20% 0.893 0.877 0.862 0.847 0.833 1.690 1.647 1.605 1.566 1.528 2.402 2.322 2.246 2.174 2.106 3.037 2.914 2.798 2.690 2.589 3.605 3.433 3.274 3.127 2.991 4.111 3.88 3.685 3.49 3.326 4.564 4.288 4.039 3.812 3.605 4.968 4.639 4.344 4.078 3.837 5.328 4.946 4.607 4.303 4.031 5.650 5.216 4.833 4.494 4.192 5.938 5.453 5.029 4.656 4.327 6.194 5.660 5.197 4.793 4.439 6.424 5.842 5.342 4.910 4.533 6.628 6.002 5.468 5.008 4.611 6.811 6.142 5.575 5.092 4.675 7.469 6.623 5.929 5.353 4.870 7.843 6.873 6.097 5.467 4.948 7.003 6.177 517 4.97 8.244 7.105 6.233 5.548 4.997 11 12 13 14 15 20 25 30 40 Print Done Reference Periods 2% 3% 8 | 1% 1.000 2.010 3.030 4.060 5.101 1.000 2.030 3.091 4.184 5.309 12% 1.000 2.120 3.374 4.779 6.353 Future Value of Annuity of $1 5% 6% 8% 10% 1.000 1.000 1.000 1.000 2.050 2.060 2.080 2.100 3.153 3.184 3.246 3.310 4.310 4.375 4.506 4.641 5.526 5.637 5.867 6.105 6.802 6.975 7.336 8.142 8.394 8.923 9.487 9.549 9.897 10.637 11.436 11.027 11.491 12.488 13.579 12.578 13.181 14.487 15.937 7.716 6 7 8 9 10 1.000 2.020 3.060 4.122 5.204 6.308 7.434 8.583 9.755 10.950 12.169 13.412 14.680 15.974 17.293 24.297 32.030 40.568 60.402 6.468 7.662 8.892 10.159 11.464 4% 1.000 2.040 3.122 4.246 5.416 6.633 7.898 9.214 10.583 12.006 13.486 15.026 16.627 18.292 20.024 29.778 41.646 56.085 95.026 6.152 7.214 8.286 9.369 10.462 11.567 12.683 13.809 14.947 16.097 8.115 10.089 12.300 14.776 17.549 11 12 13 14 15 12.808 14.192 15.618 17.086 18.599 14.207 15.917 17.713 19.599 21.579 33.066 47.727 66.439 120.800 14.972 16.870 18.882 21.015 23.276 36.786 54.865 79.058 154.762 16.645 18.977 21.495 24.215 27.152 45.762 73.106 113.283 259.057 18.531 21.384 24.523 27.975 31.772 57.275 98.347 164.494 442.593 20.655 24.133 28.029 32.393 37.280 20 25 30 40 22.019 28.243 34.785 48.886 26.870 36.459 47.575 75.401 72.052 133.334 241.333 767.091 11 3 1,4 Print Done Anumber in the edit field and then click boala Anar i Reference Present Value of $1 Periods 2 3 4 1% 0.990 0.980 0.971 0.961 0.951 0.942 0.933 0.923 0.914 0.905 2% 0.980 0.961 0.942 0.924 0.906 3% 0.971 0.943 0.915 0.888 0.863 4% 0.962 0.925 0.889 0.855 0.822 5% 0.952 0.907 0.864 0.823 0.784 0.746 0.711 0.677 0.645 0.614 6% 0.943 0.890 0.840 0.792 0.747 8% 0.926 0.857 0.794 0.735 0.681 10% 0.909 0.826 0.751 0.683 0.621 12% 0.893 0.797 0.712 0.636 0.567 0.507 0.452 0.404 0.361 0.322 14% 0.877 0.769 0.675 0.592 0.519 0.456 0.400 0.351 0.308 0.270 16% 0.862 0.743 0.641 0.552 0.476 18% 0.847 0.718 0.609 0.516 0.437 20% 0.833 0.694 0.579 0.482 0.402 6 7 0.888 0.871 0.853 0.837 0.820 0.790 0.760 0.731 0.703 0.676 0.705 0.665 0.627 0.592 0.558 0.630 0.583 0.540 0.500 0.463 0.564 0.513 0.467 0.424 0.386 0.410 0.354 0.305 0.263 0.227 0.335 0.279 0.233 0.194 0.162 9 10 0.370 0.314 0.266 0.225 0.191 0.162 0.137 0.116 0.099 0.084 11 12 13 14 15 0.896 0.887 0.879 0.870 0.861 0.837 0.813 0.789 0.766 0.744 0.722 0.701 0.681 0.661 0.642 0.554 0.478 0.412 0.307 0.804 0.788 0.773 0.758 0.743 0.650 0.625 0.601 0.577 0.555 0.585 0.557 0.530 0.505 0.481 0.527 0.497 0.469 0.442 0.417 0.429 0.397 0.368 0.340 0.315 0.350 0.319 0.290 0.263 0.239 0.287 0.257 0.229 0.205 0.183 0.237 0.208 0.182 0.160 0.140 0.073 0.038 0.020 0.005 0.195 0.168 0.145 0.125 0.108 0.135 0.112 0.093 0.078 0.065 20 25 30 40 0.820 0.780 0.742 0.672 0.673 0.610 0.552 0.453 0.456 0.375 0.308 0.208 0.377 0.295 0.231 0.142 0.312 0.233 0.174 0.097 0.215 0.146 0.099 0.046 0.149 0.092 0.057 0.022 0.104 0.059 0.033 0.011 0.051 0.024 0.012 0.003 0.037 0.016 0.007 0.001 0.026 0.010 0.004 0.001 Print Done ter any number in the edit fields and then click Check Answer. ? Reference Future Value of $1 Periods 1 2 3 4 5 1% 1.010 1.020 1.030 1.041 1.051 2% 1.020 1.040 1.061 1.082 1.104 3% 1.030 1.061 1.093 1.126 1.159 4% 1.040 1.082 1.125 1.170 1.217 5% 1.050 1.103 1.158 1.216 1.276 6% 1.060 1.124 1.191 1.262 1.338 8% 1.080 1.166 1.260 1.360 1.469 10% 1.100 1.210 1.331 1.464 1.611 12% 1.120 1.254 1.405 1.574 1.762 6 7 8 9 10 1.062 1.072 1.083 1.094 1.105 1.126 1.149 1.172 1.195 1.219 1.194 1.230 1.267 1.305 1.344 1.265 1.316 1.369 1.423 1.480 1.340 1.407 1.477 1.551 1.629 1.419 1.504 1.594 1.689 1.791 1.587 1.714 1.851 1.999 2.159 1.772 1.949 2.144 2.358 2.594 1.974 2.211 2.476 2.773 3.106 11 12 13 14 15 1.116 1.127 1.138 1.149 1.161 1.243 1.268 1.294 1.319 1.346 1.384 1.426 1.469 1.513 1.558 1.539 1.601 1.665 1.732 1.801 1.710 1.796 1.886 1.980 2.079 1.898 2.012 2.133 2.261 2.397 2.332 2.518 2.720 2.937 3.172 2.853 3.138 3.452 3.797 4.177 3.479 3.896 4.363 4.887 5.474 20 25 30 40 1.220 1.282 1.348 1.489 1.486 1.641 1.811 2.208 1.806 2.094 2.427 3.262 2.191 2.666 3.243 4.801 2.653 3.386 4.322 7.040 3.207 4.292 5.743 10.286 4.661 6.848 10.063 21.725 6.727 10.835 17.449 45.259 9.646 17.000 29.960 93.051 ANN Print Done