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Consider how Hunter Valley Snow Park Lodge could use capital budgeting to decide whether the (Click the icon to view Present Value of $1 table.)

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Consider how Hunter Valley Snow Park Lodge could use capital budgeting to decide whether the (Click the icon to view Present Value of $1 table.) $11,000,000 Snow Park Lodge expansion would be a good investment. Assume Hunter Valley's managers developed the following estimates concerning the expansion: (Click the icon to view Present Value of Ordinary Annuity of $1 table.) (Click the icon to view the estimates.) What is the project's NPV (round to nearest dollar)? Is the investment attractive? Why or (Click the icon to view additional information.) why not? Data table More info Assume that Hunter 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 seven-year life. They have already calculated the average annual net cash inflow per year to be $2,714,756. Dracant V/aluo af 1 Present Value of Ordinary Annuity of $1

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