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Consider how Juda Valley Brook Park Lodge could use capital budgeting to decide whether the (Click the icon to view Present Value of $1 table.)
Consider how Juda Valley Brook Park Lodge could use capital budgeting to decide whether the (Click the icon to view Present Value of $1 table.) $11,500,000 Brook Park Lodge expansion would be a good investment. Assume Juda Valley's managers developed the following estimates conceming 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? Calculate the net present value of the expansion. (Enter any factor amounts to three decimal places, X.XXX. Round to the nearest whole dollar.) The expansion is project because its NPV is Data table More info Assume that Juda Valley uses the straight-line depreciation method and expects the lodge expansion to have a residual value of $850,000 at the end of its ten-year life. They have already calculated the average annual net cash inflow per year to be $2,711,268. Precent Value of $1 Dracont Valo nf Arrlinary Annuity af t1
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