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Consider how Rouse Valley Waterfall 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 Waterfall Park Lodge could use capital budgeting to decide whether the $12,500,000 (Click the icon to view Present Value of $1 Waterfall Park Lodge expansion would be a good 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) (Click the icon to view additional information) What is the project's NPV (round to nearest dollar)? Is the investment attractive? Why or why not? Calculate the net present value of the expansion. (Enter any factor amounts to three decimal places, XXX. Round to the nearest whole dollar.) More info Assume that Rouse Valley uses the straight-line depreciation method and expects the lodge expansion to have a residual value of $750,000 at the end of its eight-year life. They have already calculated the average annual net cash inflow per year to be $2,823,812. Data table Reference Reference

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