Consider how Pine Valley, a popular ski resort, could use capital budgeting to decide whether the $8.5 million River 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.) Dond thoroquiramonte Requirement 1. What is the project's NPV? Is the investment attractive? Why or why not? Requirements Calculate the net present value of the expansion. (Round your answer to the nearest whole dd Net present value of expansion 10680350 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? Assume that Pine Valley's managers developed the following estimates concerning a planned expansion to its River Park Lodge (all numbers assumed): Number of additional skiers per day 125 Average number of days per year that weather conditions allow skiing at Pine Valley 156 Useful life of expansion (in years) 10 Average cash spent by each skier per day $ 244 Average variable cost of serving each skier per day $ 144 Cost of expansion $ 8,500,000 Discount rate 12% 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 ten-year life. It has already calculated the average annual net cash inflow per year to be $1,950,000