Consider how Juda Valley Spring Park Lodge could use capital budgeting to decide whether the $13,500,000 Spring Park Lodge expansion would be a good investment. Assume Juda Valley's managers developed the following estimates concerning the expansion: E: (Click the icon to view the estimates.) (Click the icon to view additional information.) 3 (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.) Net Cash Annuity PV Factor PV Factor (i=12%, Years Inflow (i=12%, n=11) n=11) Present Value Years 1 - 11 Present value of annuity Year 11 Present value of residual value Total PV of cash inflows Year 0 Initial investment Net present value of expansion The expansion is project because its NPV is ion: Click the icon to view Present Value of Ordinary Annuity blollar)? Is the inv. i Data Table mation.) 117 skiers ansion. (Enter any factor am Net Cash Ann Inflow 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 Discount rate 146 days 11 years 239 value 86 13,500,000 12% ansion ct because its NPV is Print Done then continue to the next question. i - X Reference