Consider how Star Valley, a popular ski resort, could use capital budgeting to decide whether the $$9$ million

Autumn Park Lodge expansion would be a good investment.

$($Click the icon to view the expansion estimates.$)$

$($Click the icon to view the present value annuity factor table.$)$

$EE($Click the icon to view the present

value factor table.$)$

$($Click the icon to view the future value annuity factor table.$)$

E $($Click the icon to view the future value

factor table.$)$

Requirements

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

Assume the expansion has no residual value. What is the project's NPV$?$ Is

the investment still attractive? Why or why not?