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Consider how Rouse Valley Brook Park Lodge could use capital budgeting to decide whether the $12,500,000 (Click the icon to view Present Value of $1

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Consider how Rouse Valley Brook Park Lodge could use capital budgeting to decide whether the $12,500,000 (Click the icon to view Present Value of $1 Brook Park Lodge expansion would be a good table.) investment. Assume Rouse Valley's managers developed (Click the icon to view Present Value of the following estimates concerning the expansion: Ordinary Annuity of $1 table.) (Click the icon to view the estimates.) What is the project's NPV (round to nearest (Click the lcon to view additional information.) dollar)? Is the investment attractive? Why or why nnt? Calculate the net present value of the expansion. (Enter any factor amounts to three decimal places, X. XXX. Round to the nearest whole dollar.) Data table More info Assume that Rouse Valley uses the straight-line depreciation method and expects the lodge expansion to have a residual value of $850,000 at the end of its ten-year life. They have already calculated the average annual net cash inflow per year to be $2,634,650. Reference Reference

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