Consider how White Valley Stream Park Lodge could use capital budgeting to decide whether the $12,500,000 Stream Park Lodge expansion would be a good investment. Assume White Valley's managers developed the following estimates concerning the expansion: (Click the icon to view the estimates.) (Click the icon to view additional information.) 5(Click the icon to view Present Value of $1 table.) (Click the icon to view Present Value of Ordinary Annuity of $1 table.) 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.) Present Net Cash Inflow Annuity PV Factor (i=8%, n=8) PV Factor (i=8%, n=8) Data Table - X Years Value 1-8 Present value of annuity Present value of residual value Total PV of cash inflows L 118 skiers Initial investment Net present value of expansion Number of additional skiers per day Average number of days per year that weather conditions allow skiing at White 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 Discount rate 143 days 8 years 246 The expansion is project because its NPV is . 12,500,000 More Info - X 8% Print Done Assume that White Valley uses the straight-line depreciation method and expects the lodge expansion to have a residual value of $500,000 at the end of its eight-year life. They have already calculated the average annual net cash inflow per year to be $2.885.454. * * 0.942 * + tot 88d- - A * | 0.513 * - * o + + + * + + Present Value of $1 |Periods| 1% | 2% | 3% | 4% | 5% | 6% | 7% | 8% | 9% | 10% | 12% | 14% | 15% | 16% | 18% | 20% | | 0.980| 0.980 | 0.971 | 0.962 | 0.952 | 0.943 | 0.935 | 0.926 | 0.917 | 0.909 | 0.893 | 0.877 | 0.870 | 0.862 | 0.847 | 0.833 | 0.380 | 0.961 | 0.943 | 0.925 | 0.907 | 0.890 | 0.873 | 0.857 | 0.842 | 0.826 | 0.797 | 0.769 | 0.756 | 0.743 | 0.718 | 0.694 | 0.971 | 0.942 | 0.915 | 0.889 | 0.864 | 0.840 | 0.816 | 0.794 | 0.772 | 0.751 | 0.712 | 0.675 | 0.658 | 0.641 | 0.609 | 0.579 | 0.961) 0.924 | 0.888 | 0.855 | 0.823 | 0.792 | 0.763 | 0.735 | 0.708 | 0.683 | 0.636 | 0.592 | 0.572 | 0.552 | 0.516 | 0.482 0.951 | 0.906 | 0.863 | 0.822 | 0.784 | 0.747 | 0.713 | 0.681 | 0.650 | 0.621 | 0.567 | 0.519 | 0.497 | 0.476 | 0.437 | 0.402 0.888 | 0.837 | 0.790 0.745 | 0.705 | 0.666 | 0.630 | 0.596 | 0.564) 0.507 | 0.456 | 0.432 | 0.410 0.871 | 0.813 0.760 0.711 | 0.665 | 0.623 | 0.583 0.547 0.452 0.400 0.376) 0.354 0.853 | 0.789 | 0.731 0.677 ) 0.627 | 0.582 | 0.540 | 0.467 0.404 | 0.351 | 0.327 | 0.305 | 0.266 0.837 | 0.766) 0.703 0.645 | 0.592 | 0.544 | 0.500 | 0.424 | 0.361 | 0.308 | 0.284 | 0.263 0.820 | 0.744 | 0.676 | 0.614 | 0.558 | 0.508 | 0.463 | 0.422 | 0.336 | 0.322 | 0.270 | 0.247 | 0.227 | 0.804 | 0.722 | 0.650 | 0.585 | 0.527 | 0.475 | 0.429 | 0.350 | 0.287 | 0.237 | 0.215 | 0.195 | 0.162 0.887 0.788 | 0.701 | 0.625 0.557 | 0.497 | 0.444 | 0.397) 0.356 | 0.319 | 0.257 | 0.208) 0.187 0.168 0.379 | 0.773 | 0.681 | 0.601 0.530 | 0.469 | 0.415 | 0.368 0.326 | 0.290 | 0.229 | 0.182 | 0.163 | 0.145 0.870 | 0.758 | 0.661) | 0.577 | 0.505 | 0.442 | 0.388 | 0.340 | 0.299) | 0.263 | 0.205 | 0.160 | 0.141 | 0.125 | 0.099 | 0.861 | 0.743 | 0.642 | 0.555 | 0.481 | 0.417 | 0.362 | 0.315 | 0.275 | 0.065 | 0.853 | 0.728 | 0.623 ) 0.534 10.458 | 0.394 | 0.339 | 0.292 | 0.252 | 0.218 | 0.163 | 0.123 | 0.107 | 0.093 | 0.071 | 0.054 0.844 | 0.714 | 0.605 0.513 0.436 | 0.371 | 0.317 | 0.270 | 0.231 | 0.198 | 0.146 | 0.108 | 0.093 0.080 | 0.836 | 0.700 | 0.587 0.494 | 0.416 | 0.350 | 0.296 | 0.250 | 0.212 | 0.180 | 0.130 | 0.095 | 0.081 | 0.069 | 0.051 | 0.038 | 0.828 | 0.686 | 0.570 0.475 | 0.396 | 0.331 | 0.277 | 0.232 | 0.194 | 0.164 | 0.116 | 0.083 | 0.070 | 0.060 | 0.043 | 0.031 0.820 | 0.673 | 0.554 | 0.456 | 0.377 | 0.312 | 0.258 | 0.215 | 0.178 | 0.149 | 0.104 | 0.073 | 0.061 | 0.051 | 0.037 | 0.026 | 0.811 | 0.660 | 0.538 | 0.439 | 0.359 | 0.294 | 0.242 | 0.199 | 0.164 | 0.135 | 0.093 | 0.054 | 0.053 | 0.044 | 0.031 | 0.022 0.803 | 0.647 | 0.522 | 0.422 | 0.342 | 0.278 | 0.226 | 0.184 | 0.150 | 0.123 | 0.083 | 0.056 | 0.046 | 0.038 | 0.026 | 0.018 | 0.795 | 0.634 | 0.507 | 0.406 | 0.326 | 0.262 | 0.211 | 0.170 | 0.138 | 0.112 | 0.074 | 0.049 | 0.040 | 0.033 | 0.022 | 0.015 | 1700 | Acn3 | ana | naan| nIA7 | nan | AEO T HE TAtna | Ance | naaS | Anar Tonga | nan Innas| Present Value of Ordinary Annuity of $1 Periods| 1% | 2% | 3% | 4% | 5% | 6% | 7% | 8% | 9% | 10% | 12% | 14% | 15% | 16% | 18% | 20% | 0.990 | 0.980 | 0.971 | 0.962 | 0.952 | 0.343 | 0.935 | 0.926 | 0.917 | 0.909 | 0.893 | 0.877 | 0.870 | 0.862 | 0.847 | 0.833 1.970 | 1.942 | 1.913 | 1.886 | 1.859 | 1.833 | 1.808 | 1.783 | 1.759 | 1.736 | 1.690 | 1.647 | 1.626 | 1.605 | 1.566 | 1.528 2.941 | 2.884 | 2.829 | 2.775 | 2.723 | 2.673 | 2.624 | 2.577 | 2.531 | 2.487 | 2.402 | 2.322 | 2.283 | 2.246 | 2.174 2.105 | 3.808 3.717 3.630 | 3.546 | 3.465 | 3.387 3.170 | 3.037 | 2.914 | 2.855 | 2798 4.580 | 4.452 | 4.329 | 4.212 | 4.100 791 |3.605 | 3.433 | 3.352 | 3.274 5.242 | 5.076 6.230) 6.002 || 5.786 5.582 |7.020 | 6.733 | 6.463) 6.210 | 8.162 7.786 | 7.435|7.108 6.802 |8.983 | 8.530 | 8.111|7.722 | 7.360 10.368|9.787 | 9.253 | 8.760 | 8.306 | 7.887 11.255|10.575) 9.954 | 9.385 | 8.863 | 8.384 (12.134|11.348|10.635/ 9.986 | 9.394 | 8.853 | 8.358 |13.004|12.106|11.296|10.563| 9.899 | 9.295 | 8.745 | 8.244 7.367 (13.865|12.849|11.938|11.118 10.380) 9.712 | 9.108 | 8.559 | 8.061 7.606 (14.718 13.578|12.561|11.652|10.838|10.106 9.447 | 8.851 | 8.313 | 6.974 |15.562|14.292|13.166|12.166|11.274|10.477|9.763 | 9.122 | 8.544 |7.120 (16.398|14.992|13.754 12.659|11.690 10.828|10.059) 9.372|8.756 8.201 | 7.250 |17.226|15.678 14.324|13.134 12.085|11.158|10.336) 9.604 | 8.950 | 7.366 (18.046|16.351 14.877 13.590|12.462|11.470 10.594 9.818|9.129 | 7.469 | 6.623 | 6.259 5.929 (18.857|17.011|15.415|14.029|12.821|11.764 10.836|10-017| 9.292 | 8.649 | 7.562 | 6.687 | 6.312 5.384 | 4.891 |19.660|17.658|15.937 14.451|13.163|12.042|11.061|10.201| 9.442 | 8.772 |7.645 | 6.743 | 6.359 | 6.011 5.410 4.909 (20.456|18.292|16.444|14.857|13.489|12.303|11.272|10-371| 9.580 | 8.883 7.718| 6.792 | 6.399 | 6.044 | 5.432 | 4.925 1 ASTao dTE nacLEA7TA onls rEAL HELnraalan7 | o nor | 7 10TE OFTE DATE nTE AEALL 037| 07.1 + NR - * - + o in + + un + + + | 0.045 + +