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Consider how Kyler Valley Spring Park Lodge could use(Click the icon to view Present Value of $1 table,) capital budgeting to decide whether the $11,500,000
Consider how Kyler Valley Spring Park Lodge could use(Click the icon to view Present Value of $1 table,) capital budgeting to decide whether the $11,500,000 Spring Park Lodge expansion would be a good investment. Assume Kyler Valley's managers developed the following estimates concerning the expansion: EEB (Click the icon to view the estimates.) (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? (Click the icon to view additional information.) Calculate the net present value of the expansion. (Enter the factor to three decimal places, X.XXX. Round your calculations to the nearest whole dollar.) Net Cash Inflow Annuity PV Factor (+14%, n=10) PV Factor Present Years (i-14%, n-10) Value 1-10 Present value of annuity 0 Initial investment Net present value of expansion When the residual value is zero, the expansion is V project because its NPV is
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