Consider how Pine Valley$,$ a popular ski$$ resort, could use capital budgeting to decide whether the $ $8$ million Spring Park Lodge expansion would be a good investment.

$1.$What is the$$ project's NPV$?$ Is the investment$$ attractive? Why or why$$ not?

$2.$Assume the expansion has no residual value. What is the$$ project's NPV$?$ Is the investment still$$ attractive? Why or why$$ not?