Consider how Pine Valley, a popular ski resort, could use capital budgeting to decide whether the $9 million Blizzard Park Lodge expansion would be a good investment Click the icon to view the expansion estimates.) (Click the icon to view the present value annuity factor table) (Click the icon to view the present value factor table) (Click the icon to view the future value annuity factor table.) (Click the icon to view the future value factor table.) Read the requirements. Requirement 1. What is the project's NPV? Is the investment attractive? Why or why not? Calculate the net present value of the expansion (Round your answer to the nearest whole dollar. Use parentheses or a minus sign for a negative net prosent value) Net present value of expansion - Data table Assume that Pine Valley's managers developed the following estimates concerning a planned expansion to its Blizzard Park Lodge (all numbers assumed): Number of additional skiers per day... 122 Average number of days per year that weather conditions allow skiing at Pine Valley.... 163 Useful life of expansion (in years) 9 Average cash spent by each skier per day...... $ 236 Average variable cost of serving each skier per day . $ 132 Cost of expansion.... $ 9,000,000 Discount rate .... 10% Assume that Pine Valley uses the straight-line depreciation method and expects the lodge expansion to have a residual value of $800,000 at the end of its nine-year life. It has already calculated the average annual net cash inflow per year to be $2,068,144. Print Done Reference now Pino Valley, a popular ski resol (Click the icon to view the expansion esti (Click the icon to view the present value (Click the icon to view the future value ad Read the requirements Requirement 1. What is the project's NPV? Calculate the net present value of the expans Net present value of expansion 6.729 Present Value of Annuity of S1 Periods 1% 2% 3% 4% 5% 6% 8% 10% 12% 14% 16% 18% 20% Period 1 0.990 0.980 0.971 0.962 0.952 0943 0.925 0.909 08930877 0.862 0847.833 Period 2 1.970 1.942 1.913 1.886 1.859 1833 1783 1735 1690 1647 1.605 1.566 1.528 Period 3 2.941 2.884 2820 2.775 2.723 2673 2577 2487 2402 2322 2246 2174 2106 Period 4 3.902 3.808 3.717 3.630 3.546 3.465 3.312 3.170 3.697 2.914 2.798 2690 2580 Period 5 4.8534.713 4.580 4452 43294212 3.993 3.791 3.605 3.433 3.274 3.127 2.991 Period 6 5.795 5.601 5.417 5.242 5.0764.917 4.5234.355 4.113.8893.6853458 3.326 Period 7 6.4726.230 6.002 5.786 5.582 520648684.564 4288 4.099 3.812 3.805 Period 8 7.652 7.3257 0206.733 6.4636210 5.7475.335 4568 4,639 43444078 3.837 Period 9 8.566 8.162778674357.10868026.247 5.750 5.328 446 4.6074300 4.331 4192 Period 10 9.471 8.9838.530 8.1117722 7.3606710 6.145 5.660 5.216 4833 444 4327 Period 11 10.368 9.787 9253 8.760 8.3067.887 7.139 6:495 5.8385.453 5029 4656 4439 Period 12 11.255 10.575 9.95493858.8638.38475366.814 6.194.660 5.197 4793 4533 riod 1312134 11 348 10.635 9.9869.3948.8537.904 7.1036424584253424910 4611 Period 14 13.004 12 106 11.296 10.563 9.899 9.295 8.24473676.6286.0025.408 5008 4675 Period 15 13.865 12849 11.938 11.11810.3809712 8.5597.805 6.611 6.142 5575 5.092 4.870 Period 20 18.046 16.35 14.877 13.58012462 11470 9.818 8.51474698.423 5.9295.353 4948 Period 2522623 19.52317 413 15.622 14.094 1278310,675 9.07778436.873 6.097 5467 Period 30 25.808 22 396 18.600 17.292 15.372 13765 112589.4278.0567.003 6.177 5517 4.979 Period 40 32 835 27355 23.115 19.793 17.159 15.046 11.925 9.7793244 7.105 6233 5548 4997 Print Done Reference - 5% Periods Period 1 Period 2 Period 3 Period 4 Period 5 Period 6 Period 7 Period 8 Period 9 Period 10 Period 11 Period 12 Period 13 Period 14 Period 15 Period 20 Period 25 Period 30 Period 40 Future Value of Annuity of 31 1% 2% 3% 4% 6% 8% 10% 12% 14% 16% 18% 20% 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 2.010 2020 2.030 2040 2.050 2060 2080 2.100 2.120 2.140 2. 160 2.180 2.200 3.030 3.060 3.091 3.122 3.153 3.184 3246 3.310 3.374 3.440 3.506 3.572 3.640 4,060 4.122 4.184 4.246 4310 4 375 4.506 4.641 4.779 4.921 5.066 5.215 5.368 5.101 5.204 5.309 5.416 5.526 5.637 5.867 6105 6.353 6.610 6.877 7.154 7.442 6.152 6.308 6.468 6.633 6.802 6.975 7.336 7.716 8.115 8.536 8.977 9442 9.930 7.214 7.434 7.662 7.898 8.142 8.394 8.923 9.487 10.089 10.730 11.414 12.142 12916 8.286 8,583 8.892 9.214 9.549 9.897 10.637 11.436 12 300 13233 14.240 15327 16.499 1248813.579 14.776 9.755 10.159 10.583 11.027 11491 16.085 17 519 9.369 19.086 20.799 1448715.937 17.549 10.462 10.950 11.464 12.006 12.578 13.181 19.337 21.321 23 521 25 950 25.733 28.755 32.150 11.567 12.16912808 13.486 14.207 14.972 16,645 18.531 20.655 23.045 27 271 30.850 34 931 39.581 12 683 13.412 14.192 15.026 15,917 16.870 18.977 21.384 24.133 32.089 36.786 42219 48.497 13.809 14.680 15.61816.627 17.713 18.882 21495 24.523 28.029 37.581 43.672 50 818 59.196 14.94715.974 17.086 18.292 19.599 21.015 24 215 27.975 32 393 43.842 51.680 60.965 72035 16.097 17 293 18.599 20.024 21.579 23 276 27.152 31.772 37280 115 380 146.628 186.688 22019 24 297 26.870 29.778 33.056 36.786 45.7625727572052 91,025 28 243 32 030 36.459 41.646 47.727 54.865 73.106 98.347 133.334 181.871 249214342.603 471.981 34.785 40.568 47 575 56,085 66.439 79.058 113.283 164 494 241.333 356.787 530312790.948 1.181.882 48.886 10.402 75.401 95026 120.800 154.762 259.057 442593 767.091 1.342025 2.360.757 4.163.2137.343.858 8% Present Value of $1 Periods 1% 2% 3% 4% 5% 6% 10% 12% 14% 16% Period 1 18% 0.990 0.980 0.971 20% 0.962 0.952 0.943 0.926 0.909 0.8930877 Period 2 0.862 0.847 0.833 0.980 0.961 0.943 0.925 0.907 0.890 0.8570.826 0.797 0.769 0.743 0.718 0.694 Period 3 0.971 0.942 0.915 0.889 0.864 0.840 0.7940.751 0.712 0.675 0.6410.609 0.579 Period 4 0.961 0.924 0.888 0.855 0.823 0.792 0.735 0.683 0.636 0.592 0.552 0.516 0.482 Period 5 0.951 0.906 0.863 0.822 0.784 0.747 0.681 0.621 0.567 0.5190.476 0.437 0.402 Period 6 0.942 0.888 0.837 0.790 0.746 0.705 0.630 0.564 0.507 0.4560.410 0.370 0.335 Period 7 0.933 0.871 0.813 0.760 0.711 0.665 0.583 0.513 0.452 0.400 0.354 0.3140.279 Period 8 0.923 0.853 0.789 0.731 0.677 0.627 0.540 0.467 0.404 0.3510.305 0.266 0233 Period 9 0.914 0.837 0.766 0.703 0.6450.592 0.500 0.424 0.361 0.308 0.263 0.225 0.194 Period 100.905 0.820 0.744 0.676 0.614 0.558 0.463 0.386 0.322 0.270 0.227 0.1910.162 Period 110.896 0.804 0.722 0.650 0.585 0.527 0.429 0.350 0.287 0.237 0.195 0.162 0.135 Period 12 0.887 0.788 0.701 0.625 0.557 0.497 0.397 0.319 0.257 0.208 0.168 0.1370.112 Period 13 0.879 0.773 0.681 0.601 0.530 0.469 0.368 0.290 0.229 0.182 0.145 0.116 0.093 0.340 0.263 0.205 0.160 0.125 0.099 0.078 Period 14 0.870 0.758 0.661 0.577 0.505 0.442 Period 150.861 0.743 0.642 0.555 0.481 0.417 0.315 0.239 0.183 0.140 0.108 0.084 0.065 0.215 0.149 0.104 0.073 0.051 0.037 0.026 Period 200.820 0.673 0.554 0.456 0.377 0.312 0.146 0.092 0.059 0.038 0.024 0.016 0.010 Period 25 0.780 0.610 0.478 0.375 0.295 0.233 0.099 0.057 0.033 0.0200.012 0.007 0.004 Period 30 0.742 0.552 0.412 0.308 0.231 0.174 0.046 0.022 0.011 0.005 0.003 0.001 0.001 Period 400.672 0.453 0.307 0.208 0.142 0.097 Globe ture val Reference - X ect's NA 16% 18% fthe ex Periods Period 1 Period 2 Period 3 Period 4 Period 5 Period 6 Period 7 Period 8 Period 9 Period 10 1% 1.010 1.020 1.030 1.041 1.051 2% 1.020 1.040 1.061 1.082 1.104 3% 1.030 1.061 1.093 1.126 1.159 1.062 1.072 1.083 1.094 1.105 1.126 1.149 1.172 1.195 1.219 1.194 1.230 1.267 1.305 1.344 Future Value of $1 4% 5% 6% 8% 10% 12% 14% 20% 1.040 1.050 1.060 1.080 1.100 1.120 1.140 1.160 1.180 1.200 1,082 1.103 1.124 1.166 1.210 1.254 1300 1346 1.392 1440 1.125 1.158 1.191 1260 1.331 1405 1482 1,561 1.643 1.728 1.170 1.216 1262 1.360 1.464 1.574 1689 1.811 1.939 2074 1.217 1.276 1.338 1.489 1.611 1.762 1.925 2.100 2288 2488 1.265 1.340 1419 1.587 1.772 1.9742.195 2436 2.700 2986 1.316 1.407 1.504 1.714 1.949 2211 2.502 2.826 3.185 3.583 1.369 1.477 1.594 1.851 2.144 2476 2853 3278 3.759 4.300 1.423 1.551 1.689 1.999 23582.773 3.252 3.803 4435 5.180 1.480 1.629 1.791 2.159 2.594 3.106 3.707 4.411 6.192 1.539 1.710 1.898 2332 2.853 3.4794.228 5.117 6.176 7.430 1.601 1.796 2012 2.518 3.138 3.896 4.818 5.936 8.916 7.288 2.133 2.720 3.452 1.886 1.665 4.363 6.886 5,492 10.699 8.599 12 839 2 261 1.980 1.732 7.988 10.147 4887 6.261 2.937 3.797 2.079 15.407 5474 4.177 1.801 2.397 3.172 7.138 9.266 11.974 2.191 2653 3.207 4.661 6.727 9.646 13.743 19.461 27.390 38.338 2.666 3386 4.292 6 848 10 83517.000 26.462 40.874 62.669 95,396 3.243 4.322 5.743 10.063 17449 29.960 50.950 85.850 143.371 237.376 4.801 7.040 10.286 21.725 45.259 93.051 188,884 378.721 750.378 1469.772 5234 1.116 1.127 1.138 1.149 1.161 1.243 1.268 1.294 1.319 1.346 1.384 1.426 1.469 1.513 1.558 Period 11 Period 12 Period 13 Period 14 Period 15 Period 20 Period 25 Period 30 Period 40 1.220 1.282 1.348 1.489 1.486 1.641 1.811 2208 1.806 2094 2.427 3 262