Data Table Assume that Golden Valley's managers developed the following estimates concerning a planned expansion to its Spring Park Lodge (all numbers assumed) 124 Number of additional skiers per day Average number of days per year that weather 156 10 238 144 $ 8,500,000 10% conditions allow skiing at Golden Valley Average cash spent by each skier per day .. . . .. . . . . . Average variable cost of serving each skier per day Cost of expansion 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 ten-year life. It has already calculated the average annual net cash inflow per year to be $1,818,336 Reference Present Value of Annuity of $1 Periods | 1% | 2% | 3% | 4% | 5% | 6% | 8% | 10% | 12% | 14% | 16% | 18% | 20% 1 0.990 0.980 0.9710.962 0.9520.9430.9260.9090.8930.8770.8620.8470.833 2 1.9701.9421.913 1.886 1.8591.833 1.783 1.736 1.690 1.647 1.605 1.566 1.528 3 2.9412.8842.829 2.7752.723 2.673 2.5772.487 2.402 2.322 2.2462.174 2.106 43.902 3.808 3.717 3.630 3.546 3.465 3.312 3.170 3.037 2.914 2.7982.690 2.589 54.8534.7134.580 4.452 4.3294.212 3.9933.7913.605 3.433 3.2743.127 2.991 65.7955.6015.417 5.2425.0764.917 4.6234.355 4.111 3.8893.6853.4983.326 7 6.728 6.472 6.230 6.0025.786 5.582 5.206 4.868 4.5644.288 4.039 3.812 3.605 8 7.6527.325 7.020 6.733 6.463 6.210 5.7475.3354.968 4.6394.344 4.078 3.837 9 8.566 8.162 7.7867.435 7.1086.802 6.2475.7595.3284.9464.6074.3034.031 10 9.4718.9838.530 8.1117.7227.360 6.710 6.145 5.6505.216 4.8334.4944.192 1110.3689.787 9.2538.760 8.306 7.887 7.139 6.4955.9385.453 5.029 4.656 4.327 12 11.255 10.575 9.9549.3858.8638.3847.5366.8146.1945.6605.1974.7934.439 13 12.134 11.348 10.635 9.9869.3948.8537.9047.103 6.4245.842 5.342 4.910 4.533 14 13.004 12.106 11.296 10.5639.8999.2958.2447.3676.628 6.002 5.4685.0084.611 15 13.865 12.849 11.938 11.118 10.380 9.712 8.5597.606 6.811 6.142 5.575 5.092 4.675 20 18.046 16.351 14.877 13.590 12.462 11.4709.818 8.514 7.4696.623 5.9295.353 4.870 2522.023 19.52317.413 15.622 14.09412.78310.675 9.077 7.843 6.873 6.0975.4674.948 30 25.808 22.396 19.600 17.292 15.37213.765 11.258 9.427 8.055 7.003 6.177 5.517 4.979 40 32.83527.35523.115 19.79317.15915.046 11.925 9.7798.2447.105 6.2335.5484.997 8185 082 0 410 .6 9 989 '2 8 7"- 3457 14 39479 .1 12357 92605 1122 2 31 19 85 28 0025 % 0 8 7 1 8-0 1 521 6 6206 9 12357 9 0425 4091 30620 5876 8766 323 8 94253 1471 6-0 1 5 51 72 57 51912 5 7 788 205 0 7203 0369 37273 1 1111 22334 9 346 8 8 00493 5 6103 7 112346 80247 3 7127 015 67 7 9 0-0 1 3 11 2 346 79 11 135 814 37 787 57552 26 388 644 024 68147 5 7915 60 8 2 12345 78 57 5 737 998 41 98802 780 13 46813 6 136 938 12345 689 6- 59 15 306 22978 773 512 04 238 975 0135 81 345 68912 45791 66724 8656 0 3 2 124 682 12345 679 02 3568 82869 0951 09189 7570 14 81605 8454 3 0 0 013 468 12345 678 01 24578 9 146 0 23457 4200 92 2054 12345 6789 77 93 01 24692 7 0 0 518 0-2346 12345 6789 0-2345 1 2 3 4 5 6789 4 Present Value of $1 2% | 3% 4% 5% 6% | Periods 1% 8% | 10% | 12% | 14% | 16% | 18% | 20% 10.9900.9800.9710.962 0.952 0.943 0.926 0.909 0.8930.877 0.862 0.847 0.833 20.9800.9610.9430.9250.907 0.890 0.857 0.8260.7970.7690.743 0.718 0.694 3 0.971 0.942 0.915 0.8890.864 0.840 0.7940.7510.712 0.675 0.641 0.609 0.579 40.961 0.9240.8880.8550.8230.7920.735 0.6830.6360.5920.5520.5160.482 50.951 0.906 0.8630.822 0.7840.7470.6810.6210.567 0.519 0.476 0.437 0.402 6 0.9420.888 0.8370.7900.7460.7050.630 0.5640.5070.4560.410 0.370 0.335 7 0.933 0.871 0.813 0.760 0.711 0.665 0.5830.513 0.452 0.400 0.354 0.314 0.279 80.923 0.853 0.7890.731 0.677 0.627 0.540 0.467 0.404 0.3510.3050.2660.233 90.914 0.837 0.7660.7030.645 0.592 0.500 0.4240.361 0.3080.2630.225 0.194 10 0.905 0.820 0.7440.676 0.614 0.558 0.4630.3860.322 0.270 0.227 0.191 0.162 11 0.8960.8040.7220.6500.5850.527 0.4290.3500.287 0.237 0.1950.162 0.135 12 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 13 0.8790.773 0.6810.601 0.530 0.4690.3680.2900.2290.1820.145 0.1160.093 14 0.870 0.7580.661 0.577 0.505 0.442 0.340 0.263 0.205 0.160 0.125 0.099 0.078 15 0.8610.743 0.642 0.555 0.4810.417 0.315 0.2390.1830.140 0.108 0.0840.065 20 0.820 0.673 0.5540.456 0.377 0.312 0.215 0.149 0.1040.073 0.0510.037 0.026 25 0.780 0.610 0.478 0.375 0.2950.2330.146 0.092 0.0590.038 0.0240.016 0.010 30 0.7420.5520.412 0.3080.2310.174 0.0990.057 0.033 0.020 0.012 0.007 0.004 40 0.672 0.453 0.307 0.208 0.142 0.097 0.046 0.022 0.011 0.005 0.0030.001 0.001 2 0 16 99 39 07 38 96 76 684 332 0848 6 4 11 49 2-1 1 1 2 2 23456 78 10 12 15 02398 595 853 689 789 479 813692 71742 12519 3 8 2 11-12 23345 678 8 5 140 675 81 48284 1989 488 11112 22334 55679 0 295 27 6821 196 8421 8 7 542 4163 076 717 96374 6 79687 2-1 2 4 5 7 92471 48384 599 0-1 2 3 4 6 135 81471 7 075 9 741 9 28 0 04128 9 62963 I 91 82317 723 89 91369 094 5 3 45567 801 6 445 77890 63 025 7 5693 9152-1 2 01369 36925 0001-1 6938 6 360 2 34455 8042 11223 2 289 0 1-0 0 0 0-2345 12345 6789 1. What is the project's NPV? Is the investment attractive? Why or why not? 2. Assume the expansion has no residual value. What is the project's NPV? ls the investment still attractive? Why or why not? Consider how Golden Valley, a popular ski resort, could use capital budgeting to decide whether the $8.5 million Spring Park Lodge expansion would be a good investment. (Click the icon to view the expansion estimates.) Click he icon to view the present value annuity factor table. Click the icon to view the present value actor 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 $