Consider how Hope Valley, a popular ski resort, could use capital budgeling to decide whether the $8.5 million Stream 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 $ i Requirements 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] Print Done Enter any number in the edit fields and then click Check Answer. S parts remaining Clear All Check Answer Data Table Assume that Hope Valley's managers developed the following estimates concerning a planned expansion to its Stream Park Lodge (all numbers assumed): 117 Number of additional skiers per day........ Average number of days per year that weather conditions allow skiing at Hope Valley 165 Useful life of expansion (in years). ............. 10 Average cash spent by each skier per day ...........$ 237 Average variable cost of serving each skier per day .... $ 142 Cost of expansion... ...... $ 8,500,000 Discount rate.. 14% 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 ten-year life. It has already calculated the average annual net cash inflow per year to be $1,833,975. Print Done Reference Periods 1.736 1% 0.990 1.970 2.941 3.902 4.853 5.795 6.728 7.652 8.566 9.471 voor 2% 0.980 1.942 2.884 3.808 4.713 5.601 6.472 7.325 8.162 8.983 | 18% 0.847 1.566 2.174 2.690 3.127 3.889 Present Value of Annuity of $1 3% 4% 5% 6% 8% 10% 12% 14% 16% 0.971 0.962 0.952 0.943 0.926 0.909 0.893 0.877 0.862 1.913 1.886 1.859 1.833 1.783 1.690 1.647 1.605 2.829 2.775 2.723 2.673 2.577 2.487 2.402 2.322 2.246 3.717 3.630 3.546 3.465 3.312 3.170 3.037 2.914 2.798 4.580 4.452 4.329 4.212 3.993 3.791 3.605 3.433 3.274 5.417 5.242 5.076 4.917 4.623 4.355 4.111 3.685 6.230 6.002 5.786 5.582 5.206 4.868 4.564 4.288 4.039 7.020 6.733 6.463 6.210 5.747 5.335 4.968 4.639 4.344 7.786 7.435 7.108 6.802 6.247 5.759 5.328 4.946 4.607 8.530 8.111 7.722 7.360 6.710 6.145 5.650 5.216 4.833 9.253 8.760 8.306 7.887 7.139 6.495 5.938 5.453 5.029 9.954 9.385 8.863 8.384 7.536 6.814 6.194 5.660 5.197 10.635 9.986 9.394 8.853 7.904 7.103 6.424 5.842 5.342 11.296 10.563 9.899 9.295 8.244 7.367 6.628 6.002 5.468 11.938 11.118 10.380 9.712 8.559 7.606 6.811 6.142 5.575 14.877 13.590 12.462 11.470 9.818 8.514 7.469 6.623 5.929 17.413 15.622 14.094 12.783 10.675 9.077 7.8436.8736.097 19.600 17.292 15.372 13.765 | 11.258 9.427 | 8.055 7.003 6.177 23.115 19.793 17.159 15.046 11.925 9.7798.244 7.105 6.233 3.498 3.812 4.078 4.303 4.494 20% 0.833 1.528 2.106 2.589 2.991 3.326 3.605 3.837 4.031 4.192 4.327 4.439 4.533 4.611 4.675 4.870 4.948 4.979 4.997 = 10.368 9.787 11.255 10.575 12.134 11.348 13.004 12.106 13.865 12.849 18.046 16.351 22.023 19.523 25.808 22.396 32.835 27.355 4.656 4.793 4.910 5.008 5.092 5.353 5.467 5.517 5.548 8 GB Print Done A Reference Periods 2% 0.980 0.961 0.942 0.924 0.906 GO ovo AWN- 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 0.888 0.871 0.853 0.837 0.820 3% 0.971 0.943 0.915 0.888 0.863 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 4% 0.962 0.925 0.889 0.855 0.822 0.790 0.760 0.731 0.703 0.676 0.650 0.625 0.601 0.577 0.555 0.456 0.375 0.308 0.208 Present Value of $1 5% 6% 8% 10% 0.952 0.943 0.926 0.909 0.907 0.890 0.857 0.826 0.864 0.840 0.794 0.751 0.823 0.792 0.735 0.683 0.784 0.747 0.681 0.621 0.746 0.705 0.630 0.564 0.711 0.665 0.583 0.513 0.677 0.627 0.540 0.467 0.645 0.592 0.500 0.424 0.614 0.558 0.463 0.386 0.585 0.527 0.429 0.350 0.557 0.497 0.397 0.319 0.530 0.469 0.368 0.290 0.505 0.442 0.340 0.263 0.481 0.417 0.315 0.239 0.377 0.312 0.215 0.149 0.295 0.233 0.146 0.092 0.231 0.174 0.099 0.142 0.097 0.046 0.022 12% 14% 16% 0.893 0.877 0.862 0.797 0.769 0.743 0.712 0.675 0.641 0.636 0.592 0.552 0.567 0.519 0.476 0.507 0.456 0.410 0.452 0.400 0.354 0.404 0.351 0.305 0.361 0.308 0.263 0.322 0.270 0.227 0.287 0.237 0.195 0.257 0.208 0.168 0.229 0.182 0.145 0.160 0.125 0.183 0.140 0.108 0.104 0.073 0.051 0.059 0.038 0.024 0.033 0.0200.012 0.0110.005 0.003 18% 0.847 0.718 0.609 0.516 0.437 0.370 0.314 0.266 0.225 0.191 0.162 0.137 0.116 0.099 0.084 0.037 0.016 0.007 0.001 20% 0.833 0.694 0.579 0.482 0.402 0.335 0.279 0.233 0.194 0.162 0.135 0.112 0.093 0.078 0.065 0.026 0.010 0.004 0.001 0.804 0.788 0.773 0.758 0.743 0.205 0.673 0.610 0.552 0.453 0.057 40 Print Done Reference Periods 2% 4% 8% 1% 1.000 2.010 3.030 4.060 5.101 6.152 7.214 8.286 1.000 2.020 3.060 4.122 5.204 1.000 2.040 3.122 4.246 5.416 18% 1.000 2.180 3.572 5.215 7.154 9.442 12.142 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 17.086 18.599 MOOV AWNE 6.633 7.898 9.214 10.583 12.006 15.327 9.369 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 Future Value of Annuity of $1 5% 6% 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 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 14.487 15.937 14.207 14.972 16.645 18.531 15.917 16.870 18.977 21.384 17.713 18.882 21.495 24.523 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 10.462 11.567 12.683 13.809 14.947 16.097 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 20% 1.000 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 19.086 23.521 28.755 34.931 42.219 50.818 60.965 13.486 15.026 16.627 18.292 20.024 29.778 41.646 56.085 95.026 22.019 28.243 34.785 48.886 26.870 36.459 47.575 75.401 146.628 342.603 790.948 4,163.213 Print [ Done Done i Reference Future Value of $1 Periods 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 12% 1.120 1.254 1.405 1.574 1.762 1% 1.010 1.020 1.030 1.041 1.051 1.062 1.072 1.083 1.094 1.105 1.116 1.127 1.138 1.149 1.161 1.220 1.282 1.348 1.489 1.974 2% 1.020 1.040 1.061 1.082 1.104 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 2.208 8% 1.080 1.166 1.260 1.360 1.469 1.587 1.714 1.851 1.999 2.159 2.332 2.518 18% 1.180 1.392 1.643 1.939 2.288 2.700 3.185 3.759 4.435 6% 1.060 1.124 1.191 1.262 1.338 1.419 1.504 1.594 1.689 1.791 1.898 2.012 2.133 2.261 2.397 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 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 10% 1.100 1.210 1.331 1.464 1.611 1.772 1.949 2.144 2.358 2.594 2.853 3.138 3.452 3.797 4.177 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 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 5.234 16% 1.160 1.346 1.561 1.811 2.100 2.436 2.826 3.278 3.803 4.411 5.117 5.936 6.886 7.988 9.266 2.211 2.476 2.773 3.106 3.479 3.896 4.363 4.887 5.474 20% 1.200 1.440 1.728 2.074 2.488 2.986 3.583 4.300 5.160 6.192 7.430 8.916 10.699 12.839 2.720 6.176 7.288 8.599 10.147 11.974 2.937 3.172 15.407 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 13.743 26.462 50.950 188.884 19.461 40.874 85.850 378.721 27.393 62.669 143.371 750.378 38.338 95.396 237.376 1,469.772 Print Done