Consider how Golden Valley, a popular ski resort, could use capital budgeting to decide whether the $ 9 million River Park Lodge expansion would be a good investment.
Homework: HW #7 - Chapter 12 Save Score: 0 of 2 pts 9 of 9 (8 complete) HW Score: 77.5%, 7.75 of 10 pts E12-33A (similar to) Question Help Consider how Golden Valley, a popular ski resort, could use capital budgeting to decide whether the $9 million River 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.) 3 (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 th 1 Calculate the net present value of the expansion i Requirements tive net present value.) Net present value of expansion $ 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 Enter any number in the edit fields and then click Check Answer. 3 parts remaining Clear All Check Answer Homework: HW #7 - Chapter 12 Save Score: 0 of 2 pts 9 of 9 (8 complete) HW Score: 77.5%, 7.75 of 10 pts E 12-33A (similar to) Question Help 0 Reference Investment. Consider how Golden Valley, a pl (Click the icon to view the ex (Click the icon to view the pr (Click the icon to view the fu Periods Read the requirements. 2.829 20% 0.833 1.528 2.106 2.589 2.991 3.326 Requirement 1. What is the proj Calculate the net present valued 14% 0.877 1.647 2.322 2.914 3.433 3.889 4.288 4.639 4.946 5.216 value.) Net present value of expansion 5.582 1% 2% 3% 4% 0.990 | 0.980 0.971 0.962 1.970 1.942 1.913 1.886 2.941 2884 2.775 3.902 3.808 3.717 3.630 4.853 4.713 4.580 4.452 5.795 5.601 5.417 5.242 6.728 6.472 6.230 6.002 7.325 7.020 6.733 8.566 8.162 7.786 7.435 9.471 8.983 8.530 8.111 10.368 9.7879.2538.760 10.575 9.954 9.385 11.348 10.635 9.986 12.106 | 11.296 10.563 12.849 11.938 11.118 16.351 14.877 13.590 22.023 19.523 17.413 15.622 25.808 22.396 | 19.600 17.292 32.835 27.355 23.115 19.793 3.605 Present Value of Annuity of $1 5% 6% 8% 10% 12% 0.952 0.943 0.926 0.909 0.893 1.859 1.833 1.783 1.736 1.690 2.723 2.673 2.577 2487 2.402 3.546 3.465 3.312 3.170 3.037 4.329 4.212 3.993 3.791 3.605 5.076 4.917 | 4.623 4.355 4.111 5.786 5.206 4.868 4.564 6.463 6.210 5.747 5.335 4.968 7.108 6.802 6.247 5.759 5.328 7.722 7.360 6.710 6.145 5.650 8.306 7.887 7.139 6.495 5.938 8.863 8.384 7.536 6.814 6.194 9.394 8.853 7.904 7.103 6.424 9.899 9.295 8.244 7.367 6.628 10.380 9.712 8.559 7.606 6.811 12.462 11.470 9.818 8.514 7.469 14.094 12.783 10.675 9.077 7.843 15.372 13.765 11.258 9.427 8.055 17.159 | 15.046 11.925 9.779 | 8.244 16% 18% 0.862 0.847 1.605 1.566 2.246 2.174 2.798 2.690 3.274 3.127 3.685 3.498 4.039 3.812 4.344 4.078 4.607 | 4.303 4.833 4.494 5.029 4.656 5.197 4.793 5.342 4.910 5.468 5.008 5.575 5.092 5.929 | 5.353 6.097 5.467 6.177 5.517 6.233 5.548 3.837 4.031 4.192 4.327 4.439 4.533 4.611 5.453 5.660 5.842 6.002 6.142 6.623 6.873 7.003 7.105 4.675 4.870 4.948 4.979 4.997 Enter any number in the edit fie Print Done 3 parts remaining Check Answer Homework: HW #7 - Chapter 12 Save Score: 0 of 2 pts 9 of 9 (8 complete) HW Score: 77.5%, 7.75 of 10 pts E12-33A (S Reference Consider how Go 5 Click the ico (Click the ico (Click the ico Periods 10% 20% 2% 1.000 1.000 Read the requirer 2.020 1% 1.000 2.010 3.030 4.060 5.101 6.152 Requirement 1.1 Calculate the net 3% 1.000 2.030 3.091 4.184 5.309 6.468 7.662 8.892 10.159 11.464 12.808 14.192 15.618 7.214 Net present value 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 8.286 9.369 10.462 11.567 12.683 13.809 14.947 16.097 22.019 28.243 34.785 48.886 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 Future Value of Annuity of $1 5% 6% 8% 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 7.716 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 14487 14.207 14.972 16.645 15.917 16.870 18.977 17.713 18.882 21.495 19.599 21.015 24.215 27.975 21.579 23.276 27.152 31.772 33.066 36.786 45.762 57.275 47.727 54.865 73.106 98.347 66.439 79.058 113.283 164.494 120.800 154.762 259.057 442.593 15.937 531 12% 1.000 2.120 3.374 4.779 6.353 8.115 10.089 12.300 14.776 17.549 20.655 24.133 28.029 32.393 37.280 72.052 133.334 241.333 767.091 14% 1.000 2.140 3.440 4.921 6.610 8.536 10.730 13.233 16.085 19.337 23.045 27.271 32.089 37.581 43.842 91.025 181.871 356.787 1,342.025 16% 1.000 2.160 3.506 5.066 6.877 8.977 11.414 14.240 17.519 21.321 25.733 30.850 36.786 43.672 51.660 115.380 249.214 530.312 2,360.757 18% 1.000 2.180 3.572 5.215 7.154 9.442 12.142 15.327 19.086 23.521 28.755 34.931 42.219 50.818 60.965 146.628 342.603 790.948 4,163.213 2.200 3.640 5.368 7.442 9.930 12.916 16.499 20.799 25.959 32.150 39.581 48.497 59.196 72.035 186.688 471.981 1,181.882 7,343.858 18.599 26.870 36.459 47.575 75.401 Enter any numbe Print Done 3 parts remaining Clear All Check Answer Save Homework: HW #7 - Chapter 12 Score: 0 of 2 pts E12-33A (similar to) 9 of 9 (8 complete) HW Score: 77.5%, 7.75 of 10 pts Question Help 0 Reference - X Consider how G (Click the ice 2 (Click the ice (Click the ice Future Value of $1 Read the require Periods 5% 8% Requirement 1. 2% 1.020 1.040 1.061 1.082 1.104 1% 1.010 1.020 1.030 1.041 1.051 1.062 1.072 1.083 1.094 1.105 20% 1.200 1.440 1.728 2.074 Calculate the ne 16% 1.160 1.346 1.561 1.811 2.100 10% 1.100 1.210 1.331 1.464 1.611 1.772 1.949 2.144 2.358 6% 1.060 1.124 1.191 1.262 1.338 1.419 1.504 1.594 1.689 1.791 2.488 Net present valu 2.826 3% 1.030 1.061 1.093 1.126 1.159 1.194 1.230 1.267 1.305 1.344 1.384 1.426 1.469 1.513 1.558 1.806 2.094 2.427 3.262 688 og ovo OWN- 4% 1.040 1.082 1.125 1.170 1.217 1.265 1.316 1.369 1.423 1.480 1.539 1.601 1.665 1.732 1.801 2.191 2.666 3.243 4.801 1.080 1.166 1.260 1.360 1.469 1.587 1.714 1.851 1.999 2.159 2.332 1.050 1.103 1.158 1.216 1.276 1.340 1.407 1.477 1.551 1.629 1.710 1.796 1.886 1.980 2.079 2.653 3.386 4.322 7.040 1.126 1.149 1.172 1.195 1.219 1.243 1.268 1.294 1.319 1.346 1.486 1.641 1.811 2.594 12% 1.120 1.254 1.405 1.574 1.762 1.974 2.211 2.476 2.773 3.106 3.479 3.896 4.363 4.887 5.474 9.646 17.000 29.960 93.051 14% 1.140 1.300 1.482 1.689 1.925 2.195 2.502 2.853 3.252 3.707 4.226 4.818 5.492 6.261 7.138 13.743 26.462 50.950 188.884 18% 1.180 1.392 1.643 1.939 2.288 2.700 3.185 3.759 4.435 5.234 6.176 7.288 8.599 10.147 11.974 27.393 62.669 143.371 750.378 1.116 1.127 1.138 1.149 1.161 6.886 1.898 2.012 2.133 2.261 2.397 3.207 4.292 5.743 10.286 2.853 3.138 3.452 3.797 4.177 6.727 10.835 17.449 45.259 2.720 937 3.172 4.661 6.848 10.063 21.725 2.986 3.583 4.300 5.160 6.192 7.430 8.916 10.699 12.839 15.407 38.338 95.396 237.376 1,469.772 1.220 1.282 1.348 1.489 7.988 9.266 19.461 40.874 85.850 378.721 2208 Enter any numbe 3 parts Print Done remaining Homework: HW #7 - Chapter 12 Save 9 of 9 (8 complete) HW Score: 77.5%, 7.75 of 10 pts Score: 0 of 2 pts E12-33A (similar to) fi - Reference X Question Help : stment. Consider how Golden Valley, a popu (Click the icon to view the expan (Click the icon to view the preser 5 (Click the icon to view the future Present Value of $1 Periods Read the requirements. Requirement 1. What is the project's Calculate the net present value of the Net present value of expansion $ 1% 0.990 0.980 0.971 0.961 0.951 0.942 0.933 0.923 0.914 0.905 0.896 0.887 0.879 0.870 0.861 0.820 0.780 0.742 0.672 2% 3% 4% 0.980 0.971 0.962 0.961 0.943 0.925 0.942 0.915 | 0.889 0.924 0.888 0.855 0.906 0.863 0.822 0.888 0.837 0.790 0.871 0.813 0.760 0.853 | 0.789 0.731 0.837 0.766 0.703 0.820 0.744 | 0.676 0.804 0.722 0.650 0.788 0.701 0.625 0.773 0.681 0.601 0.758 0.661 0.577 0.743 0.642 0.555 0.673 0.554 0.456 0.610 0.478 0.375 0.412 0.308 0.453 0.307 0.208 5% 6% 0.952 0.943 0.907 0.890 0.864 0.840 0.823 0.792 0.784 0.747 0.746 0.705 0.711 | 0.665 0.677 0.627 0.645 | 0.592 0.614 0.558 0.585 0.527 0.557 0.497 0.530 0.469 0.505 0.442 0.481 0.417 0.377 | 0.312 0.295 | 0.233 0.231 0.174 0.142 0.097 8% 0.926 0.857 0.794 0.735 0.681 0.630 | 0.583 | 0.540 0.500 0.463 0.429 0.397 0.368 0.340 | 0.315 0.215 0.146 0.099 0.046 10% 0.909 0.826 0.751 0.683 0.621 0.564 0.513 0.467 0.424 0.386 0.350 0.319 0.290 0.263 0.239 0.149 0.092 0.057 0.022 12% 14% 16% 18% 20% 0.893 0.877 0.862 0.847 0.833 0.797 0.769 0.743 0.7180.694 0.712 0.675 0.641 0.609 0.579 0.636 0.592 0.552 | 0.516 0.482 0.567 0.519 | 0.476 0.437 0.402 0.507 0.456 | 0.410 0.370 0.335 0.452 0.400 0.354 0.314 0.279 0.404 0.351 | 0.305 | 0.266 0.233 0.361 0.308 0.263 0.225 0.194 0.322 0.270 | 0.227 0.191 0.162 0.287 0.237 0.195 0.162 0.135 0.257 0.208 0.168 0.137 0.112 0.229 0.182 0.145 0.116 0.093 0.205 0.160 0.125 0.099 0.078 0.183 0.140 0.108 0.084 0.065 0.104 0.073 0.051 0.037 0.026 0.059 0.038 0.024 0.016 0.010 0.033 0.020 0.012 0.007 0.004 0.0110.005 0.003 0.001 0.001 Enter any number in the edit fields Print Done 3 parts remaining Clear All Check Answer Save Homework: HW #7 - Chapter 12 Score: 0 of 2 pts E12-33A (similar to) 9 of 9 (8 complete) HW Score: 77.5%, 7.75 of 10 pts Question Help Consider how Golden Valley, a popular ski resort, could use capital budgeting to decide whether the $9 million River 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.) (CH Data Table (Click the icon to view the future value annuity factor table.) CH Read the requirements Assume that Golden Valley's managers developed the following estimates concerning a planned expansion to its River Park Lodge (all numbers assumed): Requirement 1. What is the project's NPV? Is the investment attractive? Why Calculate the net present value of the expansion (Round your answer to the n Jue.) Net present value of expansion $ Number of additional skiers per day............ 122 Average number of days per year that weather conditions allow skiing at Golden Valley ........ 156 Useful life of expansion (in years). Average cash spent by each skier per day ........... Average variable cost of serving each skier per day .... $ 144 Cost of expansion..... ......$ 9,000,000 Discount rate................................... 10% Assume that Golden Valley uses the straight-line depreciation method and expects the lodge expansion to have a residual value of $1,000,000 at the end of its ten-year life. It has already calculated the average annual net cash inflow per year to be $1,941,264. Enter any number in the edit fields and then click Check Answer. Print Done 3 parts remaining Check Answer Homework: HW #7 - Chapter 12 Save Score: 0 of 2 pts 9 of 9 (8 complete) HW Score: 77.5%, 7.75 of 10 pts E12-33A (similar to) Question Help Consider how Golden Valley, a popular ski resort, could use capital budgeting to decide whether the $9 million River 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. A Requirements - Requirement 1. What is the project's NPV? Is til Calculate the net present value of the expansion X tive net present value.) Net present value of expansion $ 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 Enter any number in the edit fields and then click Check Answer. 3 parts Clear All remaining Check
