Consider how Park City Snow Lodge could use capital budgeting to decide whether a $13,000,000 lodge expansion would be a good investment. Assume Park City Snow Lodge's managers developed the following estimates conceming the expansion: View the additional information. View the estimates. What is the project's NPV (round to nearest dollar)? Is the investment attractive? Why or why not? View the Present Value of $1 table. View the Present Value of Ordinary Annuity of $1 table, 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 Net Cash Inflow 2788930 Year 10 Present value of residual value 850000 Total PV of cash inflows Year 0 Initial investment Net present value of expansion Annuity PV Factor PV Factor (-12%, (-12%, n=10) n=10) Present Value Additional Information Assume that Park City Snow Lodge uses the straight-line depreciation method and expects the lodge expansion to have a residual value of $850,000 at the end of its 10-year life The company calculated the average annual net cash inflow per year to be $2,768,930 Print Done Estimates Number of additional skiers per day 118 skiers Average number of days per year that weather conditions allow skiing at Park City Snow Lodge 145 days Useful life of expansion (in years) 10 years Average cash spent by each skier per day $ 240 Average variable cost of serving each skier per day 77 Cost of expansion 13,000,000 Discount rate 12% Print Done