Consider how Jones Valley Spring Park Lodge could use capital budgeting to decide whether the $13,000,000 Spring Park Lodge expansion would be a good investment. Assume Jones Valley's managers developed the following estimates concerning the expansion Click the icon to view the estimates) (Click the icon to view additional information Click the icon to view Present Value of $1 table) (Click the icon to view Present Value of Ordinary Annuity of S1 table) What is the project's NPV (round to nearest dollar)? Is the investment attractive? Why or why not? Years (8" Calculate the not present value of the expansion (Enter the factor to three decimal places xxxx Round your calculations to the nearest whole dollar) Net Cash Annuity PV Factor PV Factor (i+14%, Inflow (I-14%, n-3) ) Present Value Years 1:8 Present value of annuity Initial investment Net present value of expansion Year o - X Data Table ol ell 119 skiers aly 148 days 8 years Number of additional skiers per day Average number of days per year that weather conditions allow skiing at Jones Valley Useful life of expansion (in years) Average cash spent by each skier per day Average variable cost of serving each skier per day Cost of expansion $ 240 77 13,000,000 Discount rate 14% More Info Assume that Jones Valley uses the straight-line depreciation method and expects the lodge expansion to have no residual value at the end of its eight-year life. The project's average annual net cash inflow per year is expected to be $2,870 756 Present Value of $1 12% Periodo 1% 2% 3% 4% 5% 6% 7% 8% 9% 10% 14% 15% 16% 18% 20% Period 1 0 990 0.980 0.971 0.962 0.952 0.943 0.9350 926 0.9170 909 08930 877 0.870 0.862 0.847 0833 Period 2 09800 961 0943 0.925 0.907 08900873 085708420 8260 797 0 769 0.756 0 743 0718 0694 Period 3 0.971 0.942 0.915 0.889 0.8640 840 0.816 0.7940.772 075107120675 0.658 0.641 0.609 0.579 Period 4 0961 0.924 0.888 0.8550.823 0.792 0.763 0.735 0.708 0683 0 636 0592 0572 0.552 05160482 Period 5 0.951 0.906 0.863 0.822 0.784 0.747 0.713 0.681 0 650 06210 567 05190497 0.476 0437 0.402 Period 6 0 942 0.888 0.837 0.790 0.746 0705 0.666 0.6300 596 0.564050704560432 04100370 0.335 Period 7 0.933 0.8710 813 0.760 07110.665 0.623 0.583 0547 0.5130 4520.4000376 0.354 03140 279 Period 8 0.923 0 853 0.789 0731 06770627 0582 0.540 0.502 0.467 0.404 03510327 0305 0 266 0233 Period 9 0.914 0 837 0.766 07030645 0.592054405000 460 0.4240361 0308 0.284 0.263 0.225 0 194 Period 10 0.9050 820 0.744 0.6760 614 0.558 0508 0.463 0.422 0.386 03220270 0 2470 227 0.1910 162 Period 11 0.8960 8040.722 0.65005850527 0.475 0.429 0388 03500 287 0.237 0215 0 195 0.162 0.135 Period 12 10 887 0.788 07010625 05570.497 0444 0397 0.356 0319 0.25702080.1870.168 0.137 0.112 Period 13 0.879 0.773 0.681 0.601 0530 0.469 0415 0 3680 32602000229 0.182 0.163 0.145 0.116 0093 Period 14 0.870 0.758 0 661 05770505 0.442 0388 0340 0.299 0.263 0 205 0.1000.1410 125 0.0990078 Period 15 10.861 0.743 06420555 0.4810417 0362 0.315 02750 239 0183 0.140 0.123 0 108 00940065 Period 16 10.853 0.728 0.623 0534 0.458 0.394 0339 0292 0.252 02180 1630 1230 107 0.093 0071 0054 Period 17 0844 07140.605 0.513 0 4360371 0317 0 2700 2310.1980146 0108 0.093 0.080 0.060 0045 Period 18 0.836 0.700 0.587 0.494 0.416 0 3500 296 0 250 0212 0.180 0.130 0095 0.081 0.069 0.051 0038 Period 19 0.828 0.686 0.570 0 475 0.396 0.331 0277 0232 0 1940 164 0.116 0083 0070006000430031 Period 20 0820 0.673 0 554 0.456 0377 03120 258 0215 0.1780 1490 104 0073 0061 0051 0037 0026 Period 21 0.811 0 660 0.538 0.439 0.359 0.294 0242 0.199 0.1640.135 0093 0064 0.053 0044 0031 0.022 Period 2 lolo 21.05220423 0342 Loa 1026 1184 Le 15 o 12: 10Rosa Loma La L.018 2 Present Value of Ordinary Annuity of S1 Perods 1% 2% 3% 4% 5% 6% 7% 8% 9% 10% 12% 14% 15% 16% 18% 20% Period 1 0.990 0 980 0.971 0.962 0.952 0943 0935 0.926 09170 909 0.8930 877 0.870 0.862 0.847 0.833 Period 2 1970 1.942 1913 1888 1859 1833 1808 1783 1759 1.736 1.690 1 647 1626 1 605 1 566 1528 Period 3 2 941 28842829 2775 2723 2673 2624 25772531 2487 2402 2322 2283 2 246 2.174 2106 Period 4 3.902 3.808 3.717 3630 3.546 3.465 3.387 33123 240 3.1703037 2914 2855 2.798 2 690 2589 Period 5 4.853 4 713 4580 4.452 43294212 4.100 39933.890 3.791 3 6053433 3.352 3.274 3.127 2 991 Period 6 5.795 5 601 5417 5.242 5.076 4.917 4.767 4.623 4.486 4 355 4 111 3.889 3784 3.685 3.498 3.326 Period 7 6.728 6.472 6.230 6.002 5.786 5582 5.389 5206 5033 486845644.288 4.160 4.039 3.812 3.605 Period 8 7 652 7325 7020 6.733 6.463 6.210 597157475.535 5335 4.968 4.639 4,497 4 344 4 0783837 Period 9 8 566 8.162 7.786 7435 7.108 6.802 8.515 6 247 5.995 5.759 5.328 4.946 47724.607 4 303 4031 Period 10 9.471 8.9838.530 8.111 7.7227.360 70246.710 6.418 6.145 5.650 5.216 5019 4833 4.494 4.192 Period 11 10.36897879253 8.760 8.306 7 887 7.499 7 1396.805 6.495 5938 5.453 5.2345 029 46564327 Period 12 11 255 10575 9954 9.385 8.863 8.394 7943 75367 161 68146 194 5660 544215 197 4.793 4.439 Period 13 12 134 11.348 10.635 9.988 9.394 8.853 8.358 7.9047 487 7 103 6.424 5.842 5583 5 342 4.910 4533 Period 14 13 004 12 106 11 296 10.563 9.899 9.295 8.745 8.2447 786 73676.628 6.002 5.724 5.468 50084611 Period 15 13.865 12.849 11.938 11. 118 10,3809712 9.108 8.559 8.061 76066 811 6.142 58475.575 5.092 | 4675 Period 16 14.718 13 578 12.561 11652 10 838 10.106 9.447 8.851 8 313 7 824 6 974 6 265 5.9545 8895 1624.730 Period 17 15 562 14.29213 166 12 166 11 274 10477 9763 9.1228544 8.02271206373 6047 5.749 5222 4775 Period 18 16.399 14.992 13.754 12 659 11 690 10 828 10.05993728.756 8 2017 250 6.467 6.1285 8185273 4812 Period 19 17 226 15 678 14 324 13 134 12085 11 158 10.336 960489508 365 366 6.550 6.198 5 877 5.3164 844 Period 20 18.046 1835114877 13 590 1246211 470 10 594 9.818 9.1298 5147469 6 623 6.259 5 929 5 3534870 Period 21 18.857 1701115.415 14.029 12821 11.764 10 836 10.017 9.292 B 64975626.687 6312 5.973 5 384 4 891 Period 22 19. Al 17 A 1592144511 13.183.12.0491 11010 2011 212 8722 1 745 1743 359 011 5410 40