Consider how Juda Valley River Park Lodge could use capital budgeting to decide whether the $11,000,000 River 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 not present value of the expansion (Enter any factor amounts to three decimal places XXXX Round to the nearest whole dollar) Net Cash Annuity PV Factor PV Factor (i-12% Years Inflow (i12%, n=7) n7) Present Value Years 1-7 Present value of annulty Year 7 Present value of residual value Total PV of cash inflows Year 0 Initial investment Net present value of expansion us Data Table 117 skiers 151 days 7 years Number of additional skiers per day Average number of days per year that weather conditions allow skiing at Juda 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 $ 242 84 11,000,000 Discount rate 12% - 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 seven-year life. They have already calculated the average annual net cash inflow per year to be $2,791,386. al Present Value of $1 Periods 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 0917 0.9090893 0.877 0.8700 862 0.847 0.833 Period 2 0.990 0.961 0943 0.925 0907 0890 0 873 0.857 0 8420826 0.7970.769 0.756 0.743 0.7180.694 Period 3 0.971 0.942 0915 0.8890.8640 840 0.816 0.7940.772 0.751 0.712 0.675 0 658 0 641 0.609 0.579 Period 4 0.961 0.924 0.888 0.855 0.823 0.792 0.763 0735 0708 0.683 0 636 0.592 0.572 0.552 0516 0.482 Period 5 0 951 0.906 0 863 0.822 0.784 0.747 0713 0681 0.650 0.621 0.5670519 0497 0.476 0.437 0.402 Period 6 0.942 0.888 0.837 0.7900746 0.705 0666 0.630 0.5960 564 0.507 0456 0.432 04100370 0.335 Period 7 0.933 0.8710 813 0 760 0711 0.665 0623 0.583054705130452 0.400 0.376 0.354 0.314 0.279 Period 8 0.923 0.853 0.789 0.731 0.677 0.627 0.582 0.540 0 502 0.467 0404 0.351 0.3270 305 0 266 0233 Period 9 0.914 08370.766 0.703 0.6450.592 0544 0.5000 4600 4240361 0308 0 2840 263 0.2250 194 Period 10 0.905 0.820 0.7440 676 0.614 0.558 0508 0.463 0.422 0.38803220270 0247 0.227 0.1910 162 Period 11 10.896 0.804 0722 0.650 0.585 0.527 0.475 0.429 0 3880 350 0 287 0237 0215 0.195 01820135 Period 12 0887 0788 0.701 06250557 0.4970444 0.3970356 0319 0.257 0.208 0.1870 168 0.137 0.112 Period 13 0 879 0.7730 6810 601 0530 0469 0.415 0.368 0320 0.200 0.229 0.182 0.163 0.145 0.1180.093 Period 14 0.870 0.758 0.861 0.577 05050.442 0388 0.340 0.299 0.263 0 2050 1600 141 0.125 0099 0.078 Period 15 0861 0.743 0.642 0555 0 4810417 0.3620315 0.275 0.2390 183 0 140 0.123 0108 0084 0.065 Period 16 0 853 0.728 0623 0534 0 458 0.394 0339 0.292 0 252 02180183 0.123 0102 0.093 00710054 Period 17 0 844 0.714 0.605 0513 0.436 0.371 0317 0 2700 2310 198 0.1460108 0.093 0.08 0.000 0.045 Period 18 0036 0700 0.587 0.4940416 0.3500 200 0.250 0 2120 180 0 1300095 0081 0069 00510038 Period 19 0828 0.696 0570 0.475 0.396 0331 0277 0232 0 1940.1640.11600830070 0.060 0043 0.031 Period 20 0 820 0.673 0.554 0 456 0377 0.3120 258 0215 0.178 0.149 0.101 0.073 00510.051 0.037 0.026 Period 21 0.811 0.660 0538 0.439 0359 0294 0 242 0 199 01640 1350093 0004 0.053 0.014 0.0310 022 Dario 9 Ral 1049210 0.270.22 184 1.150 1 100 A 05 ORLAR non LOIR Reference - Present Value of Ordinary Annuity of $1 Perods 1% 2% 3% 4% 5% 6% 7% 8% 9% 10% 12% 14% 15% 16% 18% 20% Period 1 0.990 0.9800971 0962 0.9520.943 0.935 0.926 0.917 0.9090 893 0.877 0870 0.8620 847 0.833 Period 2 1970 1.942 1913 1.886 1859 1833 1808 1783 1759 1736 1.6901.647 1626 1605 1 566 1.528 Period 3 2.9412.884 2829 2.775 2723 2673 262425772531 2487 2402 2322 2283 2246 2 174 2.106 Period 4 3.902 3.808 3717 3.630 3.546 3.465 33873312 3240 3.170 3.03729142855 2.798 2.690 2.589 Period 5 4.853 4713 4.580 4452 4329 4212 4.100 3.9933.890 3.791 3 605 3433 3352 3 2743 127 12 991 Period 6 5.795 5.601 5.417 52425 076 4 917 4.767 4.623 4 486 4355 4 111 3.889 3.784 3.685 3.498 3326 Period 7 6.728 6.472 6.230 6.002 5786 5 582 5.389 5.206 5.033 4.8684.5644.288 4.160 4.039 3 812 3.605 Period 8 7 652 7.325 7020 6.733 6.463 6.210 5.971 5.7475.535 5335 4.968 4 639 4487 4.344 4.078 3837 Period 9 8.566 8 162 7 786 7.435 7.108 6.802 6.515 6 247 5.995 5.759 532849464.772 4.607 4.3034031 Period 10 9.4718 983 8.530 8.111 772273607024 6.710 6.418 6.145 5.650 5 216 5019 4833 4 494 4.192 Period 11 10.3689787 9.253 8.760 8.3067 887 7 499 7.139 6.805 6.495 5938 5.453 5 234 5029 4656 4327 Period 12 11 255 10.575 9.954 9.385 8 863 8.384 7943 7.5367 161 6.814 6.1945 660 5.421 5 197 4.793 4.439 Period 13 12.134 11 348 10 635 9.986 93948.853 8.35879047 487 7 103 6.424 5 842 5.583 5 3424.910 4533 Period 14 13.004 12 106 11 296 10.563 98999 295 8.7458.244 778673676 628 6.002 57245 468 50084611 Period 15 13 865 12 849 11 938 11 118 103809712 9.1088 559 8.061 76056 811 6.142 5847 5575 5.092 4.675 Period 16 14.718 13.57812561 11.652 10 838 10.106 9447 8851 8 313 7 824 69746.285 5954 5 669 5 162 4730 Period 17 15.562 14.292 13.166 12 166 11 274 10.477 9.7639.122 8,544 80227 1206.373 6047 5 749 5222 4.775 Period 18 16,398 1499213.754 12 659 11 690 10.828 10 059 93728 756 8 2017.250 6.467 5.128 5.818 5.2734 812 Period 19 17.226 15.678 14.324 13.13412085 11.158 10 338 9.604 8.9508 365 7.366 6.5506.198 5 877 5 316 4 844 Period 20 18.046 18:35114877 13.590 12 462 11 470 10 5949 8189 129 8 51474696.623 6.259 5920 5 3534870 Period 21 18 857 1701115.415 14029 12 821 11764 10 838 10 017 9 292 88497562 6687 6.3125.973 5 384 4 891 Dario 22 19 12 AA 15.932 14.451121312 3 11.10.2011 142 145 1741950 11 1410 2009