Consider how Rouse Valley Waterfall Park Lodge could use capital budgeting to decide whether the $11,000,000 WaterfallPark Lodge expansion would be a good investment. Assume Rouse Valley's managers developed the following estimates concerning the expansion

Consider how Rouse Valley Waterfall Park Lodge could use capital budgeting to decide whether the $11,000,000 Waterfall Park Lodge expansion would be a good investment. Assume Rouse Valley's managers developed the following estimates concerning the expansion: (Click the icon to view the estimates.) (Click the icon to view Present Value of $1 table.) (Click the icon to view Present Value of Ordinary Annuity of $1 table.) (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, X.XXX. Round to the nearest whole dollar.) i Data Table Net Cash Annuity PV Factor PV Factor Present Years Inflow (i=8%, n=8) (i=8%, n=8) Value 1-8 Present value of annuity Number of additional skiers per day 120 skiers 8 esent value of esidual value Average number of days per year that weather conditions Total PV of cash inflows 151 days 0 Initial investment 8 years Net present value of expansion allow skiing at Rouse 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 246 82 11,000,000 Discount rate 8% Print Done