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Consider how Root Valley River Park Lodge could use capital budgeting to decide whether the $ 12,000,000 River Park Lodge expansion would be a good
Consider how Root Valley River Park Lodge could use capital budgeting to decide whether the $ 12,000,000 River Park Lodge expansion would be a good investment. Assume Root ?Valley's managers developed the following estimates concerning the? expansion:
What is the? project's NPV? (round to nearest? dollar)? Is the investment? attractive? Why or why? not?
122 skiers Number of additional skiers per day Average number of days per year that weather conditions allow skiing at Root Valley Useful life of expansion (in years) Average cash spent by each skier per day Average variable cost of serving each skier per day Cost of expansion Discount rate 141 days 10 years 244 80 12,000,000 12%
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