Consider how Hope Valley, a popular ski reson could use capital budgeting to decide whether the $8 milion Hizzard Park Lodge expansion would be a good investment Click the icon to view the expansion states) Choose icon to view the present value any actor table) Click the con to view the present value factor table) Click the icon to view the future value annuty factor table) (Cick the conto ww the future value adorable) Read the Requirement. What is the projects EV is the nvestment attractive? Why or why not? Cate the net presentator of the expansion (Round your answer to the newest whole do Use parentheses cames son for a negativne present value Nint presentadas $8 million Blizzard Park Lodge expansion would be a good investment Data Table Assume that Hope Valley's managers developed the following estimates concerning a planned expansion to its Blizzard Park Lodge (all numbers assumed): 122 Number of additional skiers per day Average number of days per year that weather 162 conditions allow skiing at Hope Valley 8 Useful life of expansion (in years). 243 Average cash spent by each skier per day ........$ Average variable cost of serving each skier per day . $ 148 Cost of expansion... $ 8,000,000 Discount rate 12% Assume that Hope 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 eight-year life. It has already calculated the average annual net cash inflow per year to be $1,877,580 Print Done - X Reference ws Present Value of Annuity of $1 Periods 1% 2% 3% 4% 5% 6% 8% 10% 12% 14% 16% 18% 20% Period 1 0.990 0.980 0,971 0.962 0.952 09430 926 0 909 0 893 0.8770862 0847 0833 Period 2 1.970. 1.942 1913 1.886 1.859 1833 1.783 1736 1.690 1.647 1.6051566 1528 Period 3 2.9412.884 2.829 2775 2723 2.673 2577 2487 2402 23222246 2.1742 106 Period 4 3.902 3.808 3.717 3.63035463 465 3 312 3.170 3.037 29142798 2690 2589 Period 5 4853 4.713 4580 4452 43294212 3993 3.791 3605 3.433 3274 3.127 2 991 Period 6 5.795 5.601 5.417 5.2425.076 4.917 4 623 4355 4.111 3.889 3685 3.498 3.326 Period 7 6.728 6.472 6230 6.002 5.786 55825 2064 86845644 2884039 3.812 3.605 Period 8 76527325 7020 6.733 6.4636210 5.747 5335 49684.639 4.344 4 078 3.837 Period 9 8 566 8.162 7 786 7435 7 108 6.802 6247 5.75953284946 4 607 4.303 4031 Period 10 9.471 8.983 8.530 8.111 7 722 7.360 6.710 6.145 5.6505.216 4833 4.494 4. 192 Period 11 10 368 9.787 9.253 8.760 8306 7.8877 1396.495 5.938 5.453 5.029 4.656 4327 Period 12 11 255 10.575 9.954 9.385 8.863 8.384 7.536 6.8146.1945.660 5.197 4.793 4.439 Period 131213411 348 10.635 9.9869.394 8.853 7 904 7 103 6.424 5.842 5.342 4.910 4.533 Period 14 13 004 12.106 11.296 10563 9.899 9.295 8.244 7.367 6.628 6.0025.468 5.008 4.611 Period 15 13 865 12.849 11.938 11.118 10 380 9.7128.559 7606 6.811 6.142 5575 5.092 4.675 Period 20 18 046 16.351 14 877 13.590 12.462 11.470 9.818 8.514 7.469 6,623 5.929 5353 4.870 Period 25 22 023 19.52317 413 15.622 14 094 12.783 10.675 9.077 7.843 68736097 5.467 4948 Period 30 25 808 22396 19.600 17 292 15.372 13.765 11 2589.427 8.055 7003 6.177 5517 4.979 Period 40 32 835 27 355|23.115 19.793 17 159 15.046 11.925 9.779 8 244 7 105 6.233 5548 4 997 Print Done Reference - X Future Value of Annuity of $1 Periods 1% 2% 3% 4% 5% 6% 8% 10% 12% 14% 16% 18% 20% Period 1 1.000 1.000 1000 1000 1.000 1000 1.000 1000 1.000 1.000 1.000 1000 1000 Period 2 2010 2020 2030 2.040 2050 2060 2080 2.100 2120 2.140 2160 2 180 2200 Period 3 3.030 3060 3.091 3.122 3.153 3.184 3248 3310 3.374 3.440 3.506 3.572 3.640 Period 4 4060 4. 122 4.184 4246 4310 4 375 4 506 4.641 4779 4921 5066 5215 5368 Period 5 5.101 5.204 5309 5.416 5.526 5 637 5867 6.105 6353 6.610 6.877 7 154 7.442 Period 6 6.152 6.308 6.468 6.6336.802 6.975 7.336 7 716 8. 115 8536 8.977 9.442 9.930 Period 7 7214 7434 7 662 7898 8.142 8394 8.923 9.487 10.089 10.730 11.414 12.142 12916 Period 8 8.286 8 583 8 892 9.214 9.549 9.897 10.637 11.436 12 300 13 233 14.240 15327 16.499 Period 9 9.369 9.755 10.159 10 583 11.02711 491 12.48813579 14.776 16.085 17.519 19.086 20.799 Period 10 10.462 10.950 11.48412.006 12.578 13.18114 487 15.937 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 28.755 32.150 Period 12 12 683 13.412 14.192 15.026 15.917 16 870 18.977 21 384 24 133 27 271 30.850 34 931 39581 Period 13 13.809 14.68015618 16.627 17.713 18.882 21.495 24 523 28.029 32 089 36.788 42219 48.497 Period 14 14 947 15 974 17.086 18.292 19.599 21.015 24 215 27 975 32 393 37581 43.672 50 818 59 196 Period 15 16.09717 293 18.599 20 0242157923.278 27 152 31.772 37 280 43.842 51.680 60.965 72035 22019 24 297 26.870 29.778 33 066 36.786 45.762 57 27572 052 91 025 115 380 Period 20 146.628 186 688 Period 25 181.871 28 243 32030 36.459 41 646 47 727 54.865 73.106 98 347 133 334 249 214 471 981 342 603 Period 30 34.785 40 568 47575 58.085 66.439 79.058 113 283 164.494 241 333 356.787 530.312 790.948 1,181 882 Period 40 48.886 50.402 75.40195 026 120.800 154 762 259.057442 593 767.0911,342 0252,360.757 4 163 2137.343.858 Print Done - X Reference W Present Value of $1 Periods 1% 2% 3% 4% 5% 6% 8% 10% 12% 14% 16% 18% 20% Period 1 0.9900980097109620.952 0.943 0.926 090908930877 0862 0.847 0.833 Period 2 0980 0961 0.943 0.925 0907 0890 0.8570826 079707690743 0.718 0.694 Period 3 0971 0942 0915 0.8890.864 0.840 0794075107120675 06410 6090579 Period 4 0.961 0.924 0.888 08550 823 0792 0.735 068306360592 05520516 0.482 Period 5 0.951 0.906 0863 0822 0784 0.747 0.681 0.621 0567 0.519 0476 0.437 0.402 Period 6 0.942 08880837 0790 0.746 0705 0.630 0564 0.507 0.456 04100370 0.335 Period 7 0.933 0871 0.813 0.750 0.711 0 855 0.583 05130452 0 4000354 03140.279 Period 8 0.923 0853 0.7890731 0.677 0627 0540 0.4670404 035 0305 0.286 0233 Period 9 0914 0.837 0.766 0.703 0.6450 592 0500 0.4240381 0.308 0263 0225 0.194 Period 100.905 0 820 0.744 0.6760614 0 558 0.463 03880322 0 270 0227 0 191 0.162 Period 110 8960 8040722 0.650 0.585 0.5270429 03500287 0.237 0.19 0.162 0.135 Period 12 0887 0788 0 701 0.625 0557 0.4970 397 0319 0.257 0208 0.1680.137 0.112 Period 13 0.879 0.773 0681 0.601 0530 0.4690388 0.290 0.229 0.182 0.145 0.116 0.093 Period 140 8700.758 0.681 05770505 0.442 0340 02630 205 0.160 0.125 0099 0.078 Period 15 0861 0743 0.642 0.555 0.481 0.4170315 0239 0.183 0.140 0.108 0.084 0.065 Period 200 8200 673 05540.456 0377 0312 02150 1490 104 0.073 0.05100370 026 Period 25 0.780 0.610 0.478 0.375 0.295 0 233 0.146 0.092 0059 0038 0.0240016 0.010 Period 30 0 742 0552 0.412 03080 231 0.174 0 099 0.057 0.033 0020 0012 0007 0.004 Period 40 0.67204530307 0208 0.142 0.097 00460022 0.0110005 0003 0.001 0.001 Print Done Part 1 of 4 Question 2 > Score: 0 of 3 points Reference - X 12% ve 1811 1762 3.185 Periods Period 1 Period 2 Period 3 Por od 4 Porod 8 Period Period 7 Period 8 Period 9 Porlod 10 Period 11 Period 12 Period 13 Period 14 Period 15 Period 20 Period 25 Period 30 Period 40 1% 2% 1.010 1020 1.020 1.040 1.030 1.061 1041 1082 1051 1104 1062 1126 1072 1.149 1083 1 172 1004 1.195 1.105 1219 1.116 1.243 1127 1268 1.138 1:24 1149 1319 1161 1346 1220 1488 1282 1841 1348 1 811 1492209 Future Value of $1 3% 4% 5% 6% 89% 1095 14% 16% 18% 20% 1.030 1040 1050 1080 1.030 1.100 1.120 1100 160 1.180 1 200 1.001 1082 1 103 1124 1.166 1 210 1254 1300 1346 1392 1.440 1083 1125 1158 1.191 1280 1.331 1405 1482 1561 1843 1728 1126 1.170 1216 12821360 1464 1574 1889 1811 1839 2074 1.150 1217 1.276 1338 1489 19252100 2288 2438 1194 1285 1310 1419 1587 1772 1974 2.195 2436 2700 2888 1 230 1316 1407 1504 1714 5949 2211 2.502 2820 3.583 1287 1389 1477 1.594 1 851 2 144 2478 2653 3278 3.750 4300 1.305 1.423 1551 1689 1.999 2358 2773 3252 3.803 4435 5.180 13:44 1480 5628 1791 2.159 2594 3.100 3707 4411 5234 6 192 1384 1539 1710 1888 2332 2953 3,479 4220 5117 7430 1426 1801 1.788 2012 | 2510 3138 3896 4818 5838 7288 8916 1489 1565 1.896 2.133 2720 3.462 43835482 8888 8599 10690 1513 1732 1930 2251 2337 9797 48976251 798810 147 128.39 1558 1801 20792297 31724177 5474 71039 206 11.974 15 407 2 191 2653 3207 4.651 6.727 98446 3.7431961 27393 3838 2094 26053390 4282 8848 10836 17.000 25462 4087462669 95306 242732434322 5:743 10 083 17449 20.960 50 960 85 850 143371 237376 3262 4801 704010288217255.259 9305 138 884 378 721750378 1489772 6198 1806 Print Done wor Glear All p