Consider how Star Valley, a popular ski resort, could use capital budgeting to decide whether the $$9$ million Blizzard Park Lodge expansion would be a good investment.

${?}^1($Click the icon to view the expansion estimates.$)$

${?}^2($Click the icon to view the present value annuity factor table.$)$

${?}^4($Click the icon to view the future value annuity factor table.$)$

${?}^3($Click the icon to view the present value factor table.$)$

Read the requirements ${?}^6.$

Requirement $1.$ What is the project's NPV$?$ Is the investment attractive? Why or why not?

Calculate the net present value of the expansion. $($Round your answer to the nearest whole dollar. Use parentheses or a minus sign for a negative net present value.$)$

Net present value of expansion

Is the investment attractive? Why?

The expansion is $(1)$

project because its NPV is $(2)$

Requirement $2.$ Assume the expansion has no residual value. What is the project's NPV$?$ Is the investment still attractive? Why or why not?

Calculate the project's NPV$.($Round your answer to the nearest whole dollar. Use parentheses or a minus sign for a negative net present value.$)$

Net present value of expansion

Is the investment attractive? Why?

Without a residual value, the expansion $(3)$

NPV$.$

$1$: Data Table

Assume that Star Valley's managers developed the following estimates concerning a planned expansion to its Blizzard Park Lodge $($all numbers assumed$)$:

$$2,001,750.$

$2$: Reference