Consider how Juda Valley Spring Park Lodge could use capital budgeting to decide whether the $11,500,000 Spring 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 tablo.) 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, XxXx Round to the nearest whole dollar) Annuity PV Factor PV Factor (=14% Years Net Cash Inflow (i=14%, 18) ne B) Present Value Years 1 - 8 Present value of annuity Present value of residual value Total PV of cash inflows Year 0 Initial Investment Net present value of expansion Year 8 D) Enter any number in the edit fields and then clickCheck Answer (Click the icon to view Present Value of $1 ta ark Lodge could use capital budgeting to ring Park Lodge expansion would be a good Managers developed the following estimates (Click the icon to view Present Value of Ordi - Data Table 120 skiers 145 days 8 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 $ 238 84 11,500,000 14% Discount rate Print Done Finide and then click Sheck Answer. 5.) ormation.) Why or why not? More Info Assume that Juda Valley uses the straight-line depreciation method and expects the lodge expansion to have a residual value of $950,000 at the end of its eight-year life. They have already calculated the average annual net cash inflow per year to be $2,679,600. Print Done Reference 8% Present Value of $1 Periods 1% 2% 3% 4% 5% 6% 7% 9% 10% 12% 14% 15% 16% 18% 20% Period 1 0.990 0.980 0.971 0.9620.9520.9430.935 0.926 0.917 0.909 0.893 0.877 0.870 0.862 0.847 0.833 Period 2 0.980 0.961 0.943 0.925 0.907 0.890 0.873 0.857 0.842 0.826 0.797 0.769 0.756 0.743 0.718 0.694 Period 3 0.971 0.942 0.915 0.8890.864 0.840 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 0.735 0.708 0.683 0.636 0.592 0.572 0.552 0.516 0.482 Period 5 0.951 0.906 0.863 0.822 0.784 0.747 0.713 0.681 0.650 0.621 0.567 0,519 0.497 0.4760437 0.402 Period 6 0.942 0.888 0.837 0.790 0.746 0.705 0.666 0.630 0.596 0.564 0.5070456 0.432 0.410 0.370 0.335 Period 7 0.933 0.871 0.813 0.760 0.711 0.665 0.623 0.583 0.547 0.513 0,452 0.400 0.376 0.354 0.314 0.279 Period 8 0.923 0.853 0.789 0.731 0.677 0.627 0.5820.540 0.502 0.467 0.4040.351 0.327 0.305 0.266 0.233 Period 9 0.914 0.837 0.766 0.703 0.645 0.592 0.544 0.500 0.460 0424 0.361 0.308 0.284 0.263 0.225 0.194 Period 10 0.905 0.820 0.744 0.676 0.614 0.558 0.508 0.463 0.422 0.386 0.322 0.270 0.247 0.227 0.1910.162 Period 11 0.896 0.804 0.722 0.650 0.585 0.527 0.475 0429 0.3880.350 0.287 0.2370 215 0.1950.162 0.135 Period 12 0.887 0.788 0.701 0.625 0.557 0.4970444 0.397 0.356 0.319 0.257 0.208 0.187 0.168 0.137 0.112 Period 13 0.879 0.773 0.681 0.601 0.530 0.469 0415 0.368 0.326 0.290 0229 0.182 0.163 0.145 0.116 0.093 Period 14 0.870 0.758 0.661 0.577 0.505 0.442 0.388 0.340 0.299 0.263 0.2050.160 0.141 0.125 0.099 0.078 Period 15 0.861 0.743 0.642 0.555 0.481 0.417 0.362 0.315 0.275 0.239 0.183 0.140 0.123 0.108 0.084 0.065 Period 16 0.853 0.728 0.623 0.534 0.458 0.394 0.3390.292 0.252 0.218 0.163 0.123 0.107 0.093 0.071 0.054 Period 17 0.844 0.714 0.605 0.513 0.436 0.371 0317 0.270 0231 0.198 0.146 0.108 0.093 0.080 0.060 0.045 Period 18 0.836 0.700 0.587 0.494 0.416 0.350 0.296 0.250 0.212 0.180 0.130 0.095 0,081 0.069 0.051 0.038 Period 19 0.828 0.686 0.570 0.475 0.396 0.331 0.277 0.232 0.194 0.164 0.116 0.083 0.070 0.060 0.043 0.031 Period 20 0.820 0.673 0.554 0456 0.377 0.3120.258 0.215 0.178 0.149 0.1040.073 0.061 0.051 0.037 0.026 Period 21 0.811 0.660 0.538 0.439 0.359 0.294 0.242 0.199 0.1640.135 0.093 0.064 0.053 0.044 0.031 0.022 Print Done Clear AT nec Solve THIS eText Pages Get more Help Reference Present Value of Ordinary Annuity 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 0.943 0.935 0.926 0.917 0.909 0.893 0.877 0.870 0.862 0.847 0.833 Period 2 1.970 1.942 1.913 1.886 1.859 1.833 1.808 1.783 1.759 1.736 1.6901.6471.626 1.605 1.566 1.528 Period 3 2.9412.884 2829 2.775 2.723 2.673 2.624 2.577 2.531 2.487 2.402 2.322 2.283 2.246 2.174 2.106 Period 4 3.902 3.808 3.717 3.630 3.546 3.465 3.387 3.312 3.240 3.170 3.037 2.914 2855 2.798 2.690 2.589 Period 5 4.853 4.713 4.580 4452 4329 4.212 4.100 3.993 3.890 3.791 3.605 3433 3.352 3.274 3.127 2.991 Period 6 5.795 5.601 5.417 5242 5.076 4.917 4.767 4.623 4.486 4.355 4.111 3.8893.784 3.685 3.498 3.326 Period 7 6.728 6.472 6.230 6.002 5.786 5.582 5,389 5.206 5,033 4.868 4,564 4288 4.160 4.039 3.812 3.605 Period 8 7.652 7.3257.020 733 6.463 6.210 5.971 5.747 5.535 5.335 4.968 4.639 4487 4.344 4.078 3.837 Period 9 8.566 8.1627.786 7435 7.108 6.802 6.515 6.247 5.995 5.750 5.328 4 946 4772 4.607 4.303 4.031 Period 10 9.471 8.9838.530 8.111 7.722 7.360 7.024 6.710 6.418 6.145 5.650 5216 5.019 4,833 4.494 4.192 Period 11 10.368 9.787 9.253 8.760 8.306 7.887 7.499 7.139 6.805 6.495 5.938 5453 5.234 5.029 4.656 4327 Period 12 11.255 10.575 9.954 9.385 8.863 8.3847,943 7.536 7.161 6.814 6.194 5.660 5421 5.1974.793 4439 Period 13 12.134 11.348 10.635 9.986 9.394 8.853 8,358 7.904 7.487 7.103 6.424 5.8425,583 5.342 4.910 4.533 Period 14 13.004 12.106 11.296 10.563 9.899 9.295 8.745 8.244 7.786 7.3676.628 6.002 5.724 5.468 5.008 4.611 Period 15 13.865 12.849 11.938 11.118 10 380 9.712 9.108 8.559 8.061 7.606 6.811 6.142 5.847 5.575 5.092 4.675 Period 16 14.718 13.578 12.561 11.652 10.838 10.106 9447 8.851 8.313 7.824 6.9746.265 5.954 5.669 5.162 4.730 Period 17 15.562 14.292 13.166 12.166 11.274 10.477 9.763 9.122 8.544 8.022 7.120 6.373 6.047 5.749 5222 4.775 Period 18 16398 14.992 13.754 12.659 11.690 10.828 10.059 9.372 8.756 8.2017.250 6.4676.128 5.818 5.273 4812 Period 19 17.226 15,678 14,324 13.134 12.085 11.158 10,336 9.604 8.950 8.365 7.366 6.550 6.198 5.877 5.316 4844 Period 20 18.046 16.351 14.877 13.590 12.462 11.470 10.5949.818 9.129 8.5147469 6.623 6.259 5.9295,353 4.870 Period 21 18,857 17.011 15.415 14.029 12.821 11.764 10.836 10.0179.292 8.649 | 7.562 6.687 6.312 5.973 5.384 4.891