D Consider how Golden Valley, a popular ski resort, could use capital budgeting to decide whether the $9 million Waterfall 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.) (Click the icon to view the present value factor table) (Click the icon to view the future value annuity factor table ) (Click the icon to view the future value factor table) Read the requirements 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 Data table Assume that Golden Valley's managers developed the following estimates concerning a planned expansion to its Waterfall Park Lodge (all numbers assumed): . Number of additional skiers per day.. 125 Average number of days per year that weather conditions allow skiing at Golden Valley .. 159 Useful life of expansion (in years) 9 Average cash spent by each skier per day.......... $ 243 Average variable cost of serving each skier per day . $ 142 Cost of expansion.. $ 9,000,000 Discount rate... 12% Assume that Golden 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 nine-year life. It has already calculated the average annual net cash inflow per year to be $2,007,375. ta ne atel um ber age litid Full rage rage t of Present Value of Annuity of $1 Periods 1% 2% 3% 4% 5% 6% 8% 10% 12% 14% 16% 18% 20% Period 10.990 0.980 0.971 0.962 0.952 0.943 0.926 0.909 0.893 0.877 0.862 0.847 0.833 Period 2 1.970 1.942 1913 1.886 1.859 1.833 1.783 1736 1.690 1647 1.605 1.566 1.528 Period 3 2.9412.884 2.8292.775 2.7232 6732577 2.487 2.402 2.322 2.246 2. 1742.106 Period 4 3.902 3.808 3.717 3.6303.546 3.465 3.312 3.1703.037 2.914 2.798 2.690 2.589 Period 5 4,8534.7134.5804.452 4.3294212 3.993 3.791 3.605 3.433 3.274 3.127 2.991 Period 6 5.795 5.601 5.417 5.2425.0764.917 4 623 4.355 4.111 3.8893.685 3.498 3.326 Period 7 6.728 6.472 6.230 6.002 5.786 5.5825.206 4.8684,564 4.288 4,039 3.812 3.605 Period 87.65273257 0206.733 6.463 6.210 5.747 5.335 4.968 4.6394.344 4.078 3.837 Period 9 8.566 8.1627.786 7.435 7.108 6.802 6 247 5759 5.3284 9464.607 4 303 4031 Period 9.471 8.9838.530 8.1117.7227 360 6.710 6.145 5.6505.21614.833 4.4944 192 10 Period 10.368 9.787 9 253 8.760 8.306 7.887 7 1396 495 5.938 5.453 5.029 4.656 4.327 111 Period 11.255 10.575 9.954 9.385 8.863 8.384 7.536 6.814 6.1945.660 5.1974.793 4.439 12 Period 12.134 11.348 10.635 9.986 9.3948.853 7 904 67 103 6.424 5.842 5.3424.910 4.533 113 Period 13.004 12.106 11 296 10.563 9.899 9.295 8.244 17 3676 628 6.002 5.468 5.008 4.611 14 Period 13.865 12.849 11.938 11. 11810.380 9.712 8.559 7 606 6.811 6.142 5.575 5.092 4.675 115 Period 18.046 16.351 14.87713.590 12 462 11.470 9 818 8.514 7 469 6.623 5.929 5.353 4.870 20 Period 22.023 19.523 17.41315.62214 094 1278310 675 9.077 7.843 6.873 6.097 5.467 4 948 25 Period 25.80822.39619.60017 292 15.372 13.765 11.258 9.427 8.055 7.003 6.177 5.517 4979 30 Period 32.835 27 355|23.115 19.793 17 159 15.046 11.925 9.779 8 244 7. 105 6.233 5.548 4 997 140 cour ume expe ne en ual n 16% 1.000 18% 1.000 20% 1.000 2.160 2.180 2.200 at 3.506 Future Value of Annuity of $1 Periods 1% 2% 3% 4% 5% 6% 8% 10% 12% 14% Period 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1 Period 2010 2020 2030 2040 2050 2.060 2.080 2.100 2.120 2.140 2 Period 3.0303.0603.0913.122] 3.1533.1843.246 3.310 3.374 3.440 3 Period 4.0604.122 4.184 4.246 4.310 4.375 4.506 4.641 4.779 4.921 14 Period 5.101 5.204 5.309 5.416 5.526 5.6375.867 6.105 6 353 6610 15 Period 6.152 6.308 6.468 6.633 6,8026.975 7.3367.7168.115 8.536 16 Period 17 214 7.4347 662 7.898 8.142 8.394 8.923 9.487 10.089 10.730 3,572 3,640 Da 5.066 5.215 5.368 6.877 7.154 7.442 8.977 9.442 9.930 11.414 12.142 12.91 15.327 16.495 19.086 20.795 23.521 25.955 Period 8.286 8.5838.8929.214 9.549 9.897 10.63711 436 12.300 13.233 14.240 18 Period 9.369 9.755 10.159 10.583 11 027 11 491 12.488 13,579 14,776 16.085 17 519 19 Period 10.46210.950 11.464 12.006 12.578 13.181 14 487 15.937 17.549 19.337 21 321 10 Period 11.567 12.16912 80813.486 14 207 14 972 16.645 18.531 20.655 23.045 125 733 11 Period 12.68313 41214.192 15.026 15,917 16.870 18 977 21 38424,133 27 271 30.850 12 Period 13.809 14.680 15.618 16.627 17.713 18.882 21.49524,523 28.029 32.089 36.786 13 Period 14.94715.97417 08618.292 19.599 21.015 24,21527.975 32 393 37.581 43 672 14 Period 16.097|17.29318.599|20.024 21 57923.276 27.152 31.77237 280 43.842 51.660 28.755 32. 150 34.931 39.581 42.219 48.497 50.818 59. 19E 60.965 72.035 115 115 380 146.628 186 68 Period 22.01924.29726.87029 778 33.066 36.786 45.762 57 27572 052 91025 20 6% ca Present Value of $1 Periods 1% 2% 3% 4% 5% 8% 10% 12% 14% 16% 18% 20% Period 10.990 0.9800.971 0.9620.9520,943 0.926 0.9090,893 0.877 0.862 0.847 0.833 Period 2 0 9800.961 0.943 0.925 0.9070.890 0.8570.8260.797 0.769 0.743 0.718 0.694 Period 3 0.971 0.942 0.915 0.889 0.864 0.840 0.7940.751 0.712 0.675 0.6410.6090.579 Period 40.961 0.9240.888 0.855 0.823 0.792 0.735 0.683 0.636 0.592 0.552 0.516 0.482 Period 5 0.951 0.906 0.863 0.822 0.784 0.747 0.6810.621 0.567 0.519 0.476 0.437 0.402 Period 60.942 0.888 0.837 0.790 0.746 0.705 0.630 0.564 0,507 0.456 0.410 0.370 0.335 Period 70.933 0.871 0.813 0.7600.711 0.665 0.5830.513 0.452 0.400 0.354 0.314 0.279 Period 8 0.923 0.853 0.789 0.731 0.677 0.627 0.540 0.467 0.404 0.351 0.305 0.266 0.233 Period 9 0.9140.837 0.766 0.703 0.645 0.5920.500 0.424 0.361 0.308 0.263 0.225 0.194 Period 0.905 0.820 0.744 0.676 0.614 0.558 0.463 0.386 0.322 0.270 0.227 0.19 0.162 110 Period 0.896 0.804 0.722 0.650 0.585 0.527 0.4290.350 0.287 0.237 0.195 0.162 0.135 pga me ate um 11 beid Fage Hitid 0.887 0.788 0.701 0.625 0.557 0.4970 397 0.319 0.257 0.208 0.168 0.137 0.112 ful 0.879 0773 0.681 0.601 0.530 0.4690 3680 290 0.229 0.182 0.145 0.116 0.093 Period 12 Period 13 Period 14 Period 15 rage 0.8700 758 0.661 0.5770.505 0.442 0.340 0.263 0.205 0.160 0.125 0.099 0.078 erage st of 0.861 0.743 0.64210.555 0.481 0.417 0.315 0.2390 183 0 140 0 108 0.084 0.065 0.820 0.673 0.554 0.4560.377 0.312 0.215 0.1490 104 0.073 0.051 0.037 0.026 cour sume 0.780 0.610 0.478 0.375 0.295 0.233 0 146 0 092 0.059 0.038 0.024 0.0160.010 dexp the en nual n Period 20 Period 25 Period 30 Period 40 0.742 0.552 0.412 0 3080 2310 174 0 099 0057 0.033 0.020 0.0120 007 0.004 0.672 0 4530 307 0 208 0.142 0.097 0046 0.022 0.0110.005 0.003 0.001 0.001 3% Future Value of $1 Periods 1% 2% 4% 5% 6% 8% 10% 12% 14% 16% 18% 20% Period 1 1.010 1.020 1.030 1.040 1.050 1.060 1.080 1.100 1.120 1.140 1.160 1.180 1.200 Period 21.020 1.0401.061 1.0821.103 1.124 1.166 1 210 1.254 1.300 1.346 1.392 1.440 Period 31.030 1.061 1.093 1.125 1.1581.191 1.260 1331 1.405 1.482 1.561 1.643 1.728 Period 4 1.041 1.082 1.126 1.170 1.216 1.262 1.360 1.464 1.574 1.689 1.811 1.939 2.074 Period 51.051 1.104 1.159 1.217 1.276 | 1.338 1.469 1.611 1.762 1.925 2.100 2.288 2.488 Period 6 1,062 1.126 1.194 1.265 1.3401.419 1.587 1.772 1974 2.195 2.436 2.700 2.986 Period 7 1.072 1.149 1.230 1.316 1.407 1.504 1.714 1.949 2.2112.502 2.8263.185 3.583 Period 8 1.083 1.1721.267 1.369 1.477 1.594 1.851 2.144 2.476 2.853 3.278 3.759 4.300 Period 91.094 1.1951.305 1.4231.551 1.689 1.999 2.358 2.7733.252 3.803 4.435 5.160 Period 1.105 1.219 1.3441.48016291.791 2.1592.594 3.106 3.707 4.411 5.234 6.192 10 Period 1.116 1.243 1.3841.539 1.710 1.898 2.3322 853 3.479 4.226 5.117 6.176 7.430 111 Period 1,127 1.268 1.426 1.601 1.796 2.012 2.518 3.138 3.896 4.818 5.9367.288 8.916 12 Period 1 1381.2941.469 1.665 1.886 2 133 2.720 3.452 4.363 5.492 6.886 8.599 10.699 13 Period 1.149 1.319 1.513 1.732 1.980 2.261 2.937 3.797 4.887 6.261 7.988 10.147 12.839 14 Period 1 161 1.346 1.558 1.801 2.079 2 397 3 172 4.177 5.474 7 138 9.266 11.974 15.407 15 Period 1.220 1.4861.806 2.1912.653 3 207 4.6616.727 9.646 13.743 19.461 27 393 38.338 20 Period 1.282 1.6412094 2.666 3.386 4 2926.848 10 835 17.000 26.462 40.874 62.669 95 396 25 Period 1.348 1.811 2.427 3 243 4.322 5.743 10.063 17 449 29.960 50 950 85.850 143.371 237 376 30 Period 1.489 2 208 3.262 4.801 7.040 10.286 21.725 45 259 93.051188 884378.721750 3781 469.772 40