Consider how Juda Valley Brook Park Lodge could use capital budgeting to decide whether the $12,000,000 Brook Park Lodge expansion would be a good investment. Assume Juda 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 $1 table.) What is the project's NPV (round to nearest dollar)? Is the investment attractive? Why or 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.) Years Years 1-10 Present value of annuity Year 10 Present value of residual value Total PV of cash inflows Year 0 Initial investment Net present value of expansion More info Net Cash Inflow Annuity PV Factor PV Factor (i=12%, (i=12%, n=10) n=10) Present Value Assume that Juda Valley uses the straight-line depreciation method and expects the lodge expansion to have a residual value of $750,000 at the end of its ten-year life. They have already calculated the average annual net cash inflow per year to be $2,967,040. Print Done Data table Number of additional skiers per day 122 skiers Average number of days per year that weather conditions allow skiing at Juda Valley 152 days Useful life of expansion (in years) 10 years Average cash spent by each skier per day $ 242 - - X Average variable cost of serving each skier per day 82 Cost of expansion 12,000,000 Discount rate 12% Print Done