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Data table Requirements 1. What is the project's NPV? Is the investment attractive? Why or why not? 2. Assume the expansion has no residual value.

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Data table Requirements 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? Is the investment still attractive? Why or why not? Reference Consider how Golden Valley, a popular ski resort, could use capital budgeting to decide whether the $9 million Stream 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 Reference \begin{tabular}{|c|c|c|c|c|c|c|c|c|c|c|c|c|c|} \hline \multicolumn{14}{|c|}{ Present Value of \$1 } \\ \hline Periods & 1% & 2% & 3% & 4% & 5% & 6% & 8% & 10% & 12% & 14% & 16% & 18% & 20 \\ \hline Period 1 & 0.990 & 0.980 & 0.971 & 0.962 & 0.952 & 0.943 & 0.926 & 0.909 & 0.893 & 0.877 & 0.862 & 0.847 & 0.83 \\ \hline Period 2 & 0.980 & 0.961 & 0.943 & 0.925 & 0.907 & 0.890 & 0.857 & 0.826 & 0.797 & 0.769 & 0.743 & 0.718 & 0.69 \\ \hline eriod 3 & 0.971 & 0.942 & 0.915 & 0.889 & 0.864 & & 0.794 & 0.751 & 0.712 & 0.675 & 0.641 & 0.609 & 0.57 \\ \hline eriod 4 & 0.961 & 0.92 & 0.888 & 0.8 & 0.823 & & & 0.683 & 0.636 & 0.592 & 0.552 & 16 & 0.48 \\ \hline Period 5 & 0.951 & 0.906 & 0.863 & 0.82 & 0.7 & & & 0.621 & 0.567 & 0.519 & 0.476 & 37 & 0.40 \\ \hline eriod 6 & 0.942 & 0.888 & 0.837 & 0.790 & 0.746 & 0.705 & 0.6 & 0.564 & 0.507 & 0.456 & 0.410 & 370 & 0.33 \\ \hline eriod 7 & 0.933 & 0.871 & 0.813 & 0.76 & 0.71 & 0.6 & 0.5 & 0.51 & 0.452 & 0.400 & 0.354 & 14 & 0.27 \\ \hline eriod 8 & 0.923 & 0.853 & 0.789 & .73 & 0.677 & 0.627 & 0.540 & 0.467 & 0.404 & 0.351 & 0.305 & 0.266 & 0.23 \\ \hline Period 9 & 0.914 & 0.837 & 0.766 & 0.70 & 0.645 & 0.592 & 0.5 & 0.424 & 0.361 & 0.308 & 0.263 & 0.225 & 0.19 \\ \hline Period 10 & 0.905 & 0.820 & 0.744 & 0.676 & 0.614 & 0.558 & 0.463 & 0.386 & 0.322 & 0.270 & 0.227 & 0.191 & 0.16 \\ \hline Period 11 & 0 & 0.804 & 0.722 & 0.650 & 0.58 & 0.527 & & 0.350 & 0.287 & 0.237 & 0.195 & 0.162 & 0.13 \\ \hline 12 & 0.88 & 0.788 & 0.701 & 0.625 & 0.557 & & & 0.319 & 0.257 & 0.208 & 0.168 & 137 & 0.11 \\ \hline eriod 1 & 0.879 & 0.773 & 0.681 & 0.60 & 0.53 & 0.4 & 0.3 & 0.290 & 0.229 & 0.182 & 0.145 & 0.116 & 0.09 \\ \hline riod 14 & 0.870 & 0.758 & 0.661 & 0.577 & 0.50 & 0.4 & 0.340 & 0.263 & 0.205 & 0.160 & 0.125 & 0.099 & 0.07 \\ \hline Period 15 & 0.861 & 0.743 & 0.642 & 0.555 & 0.481 & 0.417 & 0.31 & 0.239 & 0.183 & 0.140 & 0.108 & 0.084 & 0.06 \\ \hline rind 35 & in & & & & & 2 & 0.118 & nomen & & 10020 & & & 00 \\ \hline \end{tabular} \begin{tabular}{|c|c|c|c|c|c|c|c|c|c|c|c|c|c|} \hline \multicolumn{14}{|c|}{ Present Value of Annuity of 11} \\ \hline Periods & 1% & 2% & 3% & 4% & 5% & 6% & 8% & 10% & 12% & 14% & 16% & 18% & 20% \\ \hline Period 1 & 0.990 & 0.980 & 0.971 & 0.962 & 0.952 & 0.943 & 0.926 & 0.909 & 0.893 & 0.877 & 0.862 & 0.847 & 0.833 \\ \hline Period 2 & 1.970 & 1.942 & 1.913 & 1.886 & 1.859 & 1.833 & 1.783 & 1.736 & 1.690 & 1.647 & 1.605 & 1.566 & 1.528 \\ \hline Period 3 & 2.941 & 2.884 & 2.829 & 2.775 & 2.723 & 2.673 & 2.577 & 2.487 & 2,402 & 2.322 & 2.246 & 2.174 & 2106 \\ \hline Period 4 & 3.902 & 3.808 & 3.717 & 3.630 & 3.546 & 3.465 & 3.312 & 3.170 & 3.037 & 2914 & 2.798 & 2.690 & 2.589 \\ \hline Period 5 & 4.853 & 4.713 & 4.580 & 4.452 & 4.329 & 4.212 & 3.993 & 3.791 & 3.605 & 3.433 & 3.274 & 3.127 & 2.991 \\ \hline Period 6 & 5.795 & 5.601 & 5.417 & 5.242 & 5.076 & 4.917 & 4.623 & 4.355 & 4.111 & 3.889 & 3.685 & 3.498 & 3.326 \\ \hline Period 7 & 6.728 & 6.472 & 6.230 & 6.002 & 5.786 & 5.582 & 5.206 & 4.868 & 4.564 & 4.288 & 4.039 & 3.812 & 3.605 \\ \hline Period 8 & 7.652 & 7.325 & 7.020 & 6.733 & 6.463 & 6.210 & 5.747 & 5.335 & 4.968 & 4639 & 4.344 & 4.078 & 3.837 \\ \hline Period 9 & 8.566 & 8.162 & 7.786 & 7.435 & 7.108 & 6.802 & 6.247 & 5.759 & 5.328 & 4.946 & 4.607 & 4.303 & 4.031 \\ \hline Period 10 & 9.471 & 8.983 & 8.530 & 8.111 & 7.722 & 7.360 & 6710 & 6.145 & 5.650 & 5.216 & 4.833 & 4.494 & 4. 192 \\ \hline Period 11 & 10.368 & 9.787 & 9.253 & 8.760 & 8.306 & 7.887 & 7.139 & 6.495 & 5.938 & 5.453 & 5.029 & 4.656 & 4.327 \\ \hline Period 12 & 11.255 & 10.575 & 9.954 & 9.385 & 8.863 & 8.384 & 7.536 & 6.814 & 6.194 & 5.660 & 5.197 & 4793 & 4.439 \\ \hline Period 13 & 12.134 & 11.348 & 10.635 & 9.986 & 9.394 & 8.853 & 7.904 & 7.103 & 6.424 & 5842 & 5.342 & 4910 & 4.533 \\ \hline Period 14 & 13.004 & 12.106 & 11.296 & 10.563 & 9.899 & 9.295 & 8.244 & 7.367 & 6.628 & 6.002 & 5.468 & 5008 & 4.611 \\ \hline Period 15 & 13.865 & 12.849 & 11.938 & 11.118 & 10.380 & 9712 & 8.569 & 7606 & 6.811 & 6.142 & 5.575 & 5.092 & 4.675 \\ \hline \begin{tabular}{l} Period 20 \\ Period 25 \end{tabular} & \begin{tabular}{l} 18.046 \\ 22.023 \end{tabular} & \begin{tabular}{l} 16.351 \\ 19.523 \end{tabular} & 14.877 & \begin{tabular}{l} 13.590 \\ 15.620 \end{tabular} & 12.462 & 11.470 & 9818 & 8514 & 7.469 & 6.623 & 5.929 & 5.353 & 4.0 \\ \hline & & & & 622 & 14.094 & 12783 & 10675 & 9077 & 7.843 & 6873 & 6.097 & 5.467 & 4.948 \\ \hline \end{tabular}

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