Consider how Golden Valley, a popular ski resort, could use capital budgeting to decide whether the $8 million Spring Park Lodge ex (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.) Read the requirements. (Click the icon to view the present value factor table.) (Click the icon to view the future value factor table.) good investment. Data table 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 preser Net present value of expansion Is the investment attractive? Why? The expansion is project because its NPV is Requirement 2. Assume the expansion has no residual value. What is the project's NPV? Is the investment still attractive? Why or why not? Calculate the project's NPV. (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 Is the investment attractive? Why? Assume that Golden Valley's managers developed the following estimates concerning a planned expansion to its Spring Park Lodge (all numbers assumed): Number of additional skiers per day ... Average number of days per year that weather conditions allow skiing at Golden Valley Useful life of expansion (in years) 122 163 9 236 Average variable cost of serving each skier per day . $ Cost of expansion Discount rate 138 $ 8,000,000 12% Average cash spent by each skier per day Assume that Golden Valley uses the straight-line depreciation method and expects the lodge expansion to have a residual value of $900,000 at the end of its nine-year life. It has already calculated the average annual net cash inflow per year to be $1,948,828. Without a residual value, the expansion because of the project's NPV. Print Done X