dinsider how Star Valley, a popular ski resort, could use capital budgeting to decide whether the $9 million Snow Park Lodge expansion would be a good Investment Click the icon to view the expansion estimatos) (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 i Data Table X Assume that Star Valley's managers developed the following estimates concerning a planned expansion to its Snow Park Lodge (all numbers assumed): ... . . ... 69 I. Number of additional skiers per day.. 124 Average number of days per year that weather conditions allow skiing at Star Valley 163 Useful life of expansion (in years) 10 Average cash spent by each skier per day........ $ 237 Average variable cost of serving each skier per day . $ 142 Cost of expansion... $ 9,000,000 Discount rate.. 14% Assume that Star Valley uses the straight-line depreciation method and expects the lodge expansion to have a residual value of $600,000 at the end of its ten-year life. It has already calculated the average annual net cash inflow per year to be $1,920,140. . .. Print Done 6 Reference -> 18% 0.847 1.566 2.174 2.690 3.127 20% 0.833 1.528 2.106 2.589 2.991 Present Value of Annuity of $1 Periods 1% 2% 3% 4% 5% 6% 8% 10% 12% 14% 16% Period 1 0.990 0.980 0.971 0.9620.952 0.943 0.926 0.909 0.893 0.877 0.862 Period 2 1.970 1.942 1.913 1.886 1.8591.833 1.783 | 1.736 1.690 1.647 1.605 Period 3 2.9412.884 2.8292775 2.723 2.673 2.577 2.487 2.402 2.322 2.246 Period 4 3.902 3.808 3.717 3.630 3.546 3.465 3.312 3.170 3.037 2.914 2.798 Period 5 4.853 4.713 4.580 4.452 4.329 4.212 3.993 3.791 3.605 3.433 3.274 Period 6 5.795 5.601 5.417 5.2425.0764.917 4.623 4.355 4.111 3.889 3.685 Period 7 6.728 6.4726.230 6.002 5.786 5.5825.206 4.868 4.564 4.288 4.039 Period 8 7.652 7.325 7,020 6.7336.463 6.210 5.747 5.335 4.968 4.639 4.344 Period 9 8.566 8.1627.786 7.435 7.108 6.802 6.247 5.759 5.328 4.9464.607 Period 10 9.471 8.983 | 8.530 8.111 7.722 7.360 6.710 6.145 5.650 5.216 4.833 Period 11 10.368 9.7879.253 8.760 8.3067.887 7.139 6.495 5.938 5.453 5.029 Period 12 11.255 10.575 9.954 9.3858.8638.384 7.536 6.814 6.194 5.660 5.197 Period 13 12.134 11.348 10.635 9.9869.394 8.853 7.904 7.103 6.424 5.842 5.342 Period 14 13.004 12.106 11.296 10.563 9.899 9.295 8.244 7.367 | 6.6286.002 5.468 Period 15 13.865 12.849 11.938 11.118 10.380 9.712 8.559 7.606 6.811 6.142 5.575 Period 20 18.046 16.351 14.877 13.590 12.462 | 11.470 9.818 8.5147.4696.623 5.929 Period 25 22.023 19.523 17.413 15.622 14.094 12.783 10.675 9.077 7.8436.873 6.097 Period 30 25.808 22.396 19.600 17.292 15.372 13.765 11.2589.4278.055 7.003 6.177 Period 40 32.835 27.355 23.115 19.793 17.159 | 15.046 11.925 9.779 | 8.244 7.105 6.233 3.326 3.605 3.837 4.031 4.192 3.498 3.812 4.078 4.303 4.494 4.656 4.793 4.910 5.008 5.092 4.327 4.439 4.533 4.611 4.675 5.353 5.467 5.517 5.548 4.870 4.948 4.979 4.997 Present Value of $1 Periods 1% 2% 3% 4% 5% 6% 8% 10% 12% 14% 16% 18% 20% 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 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 0.694 Period 3 0.971 0.942 0.915 0.889 0.864 0.840 0.794 0.751 0.712 0.675 0.641 0.609 0.579 Period 4 0.961 0.924 0.888 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 0.681 0.621 0.567 0.519 0.476 0.437 0.402 Period 6 0.942 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 7 0.933 0.871 0.813 0.760 0.711 0.665 0.583 0.513 0.452 0.400 0.354 0.314 0.279 Period 8 0.923 0.853 0.789 0.731 0.677 0.6270.540 0467 0.404 0.351 0.305 0.266 0.233 Period 9 0.914 0.837 0.766 0.703 0.6450.592 0.500 0.424 0.361 0.308 0.263 0.225 0.194 Period 10 0.906 0.820 0.744 0.676 0.614 0.558 0.463 0.386 0.322 0.270 0.227 0.191 0.162 Period 110.896 0.8040.722 0.650 0.585 0.527 0.429 0.350 0.287 0.237 0.195 0.162 0.135 Period 12 0.887 0.788 0.701 0.625 0.557 0.497 0.397 0.319 0.257 0.208 0.168 0.137 0.112 Period 13 0.879 0.773 0.681 0.601 0.530 0.469 0.368 0.290 0.229 0.182 0.145 0.116 0.093 Period 14 0.870 0.758 0.661 0.577 0.505 0.442 0.340 0.263 0.205 0.160 0.125 0.099 0.078 Period 15 0.861 0.743 0.642 0.655 0.481 0.417 0.315 0.239 0.183 0.140 0.108 0084 0.065 Period 20 0.820 0.673 0.554 0.456 0.377 0.3120215 0.149 0.104 0.073 0.051 0.037 0.026 Period 25 0.780 0.610 0.478 0.375 0.295 0.233 0.146 0.092 0.059 0,038 0.024 0.016 0.010 Period 30 0.742 0.552 0.412 0.308 0231 0.174 0.099 0.057 0.033 0.020 0.012 0.007 0.004 Period 400.672 0.453 0.307 0,208 0.142 0,097 0.046 0.022 0.011 0.005 0.003 0.001 0.001 preser Future Value of Annuity of $1 Periods 1% 2% 3% 4% 5% 6% 8% 10% 12% 14% 16% 18% 20% Period 1 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1000 1000 1.000 1.000 1.000 Period 2 2010 2.020 2030 2040 2.050 2060 2080 2.100 2.120 2140 2160 2.180 2.200 Period 3 3.030 3060 3.091 3.122 3.153 3.184 3.246 3,310 3.374 3.440 3.506 3.572 3.640 Period 4 4.060 4.122 4184 4.246 4.310 4.375 4506 4.641 4.779 4.921 5.066 5215 5.368 Period 5 5.101 5.204 5.309 5.416 5.526 5637 5867 6.105 6.353 6.610 6.877 7.154 7.442 Period 6 6.152 6.308 6.468 6.633 6.802 6.975 7336 7.716 8.115 8.536 8977 9.442 9 930 Period 7 7.214 7.434 7.682 7.898 8.142 8.394 8.923 9.487 10.089 10.730 11.414 12.142 12916 Period 8 8.286 8.583 8.892 9.214 9.549 9.897 10.637 11 436 12.300 13.233 14 240 15.327 16.499 Period 9 9.369 9.755 10.159 10.583 11.027 11 491 | 12.489 19.579 14776 16.085 17.519 19.086 20.799 Period 10 10.462 10 950 11464 12.006 12578 13.181 14 48715.93717 549 19.337 21.321 23.521 25.959 Period 11 11.567 12 1691280813.486 14 207 14.972 16 645 18.531 20.655 23.045 25.733 28.755 32.150 Period 12 12.583 13.412 14 192 15.026 15.917 16.870 18 977 21.384 24.133 27 271 30.850 34.931 39 581 Period 13 13.809 14.680 15.6 16.627 17.713 18.882 21.49524,523 28 029 32089 36.786 42 219 48.497 Period 14 14.94715.974 17.086 18 292 19.599 21.01524.215 27 975 32.393 37581 43672 50.818 59.196 Period 15 16.097 17 29318.5992002421.579 23.276 2715231772 37 280 43.842 51.660 60.965 72,035 Period 20 22.019 24 297 26.870 29.778 33.056 36.786 45.762 57 27572.052 91 025 115.380 146 628 180.688 Period 25 28 243 32.03036.459 41.646 47.727 54.865 73.10698 347 133.334 181.871 249.214 342 603 471981 Period 30 34.785 40 568 47 575 56 08566.43979.058 113.283 164 494 241,333 366 787 530.312 790 948 1,181.882 Period 40 48.88660.40275 401 95.026120.800 154.762 259,057 | 442.593 767 091 1,342 0252,360.757 4,163 2137.343 858 to Future Value of 51 ent 8% hal 2% 1.020 1.040 1.061 1.082 1.104 3% 1.030 1.061 1.093 1.126 1.159 4% 1.040 1.082 1.125 1.170 1.217 5% 1.050 1.103 1.158 1.216 1.276 eg net of 1.194 Periods Period 1 period 2 Period 3 Period 4 Period 5 Period 6 period 7 Period 8 Period 9 period 10 Period 11 Period 12 Period 13 Period 14 Period 15 1% 1.010 1.020 1.030 1.041 1.051 1.062 1,072 1.083 1.094 1.105 1.116 1.127 1.138 1.149 1.161 1.220 1.282 1.348 1.489 1.126 1 149 1.172 1.195 1219 1.230 1.267 1.305 1.344 1.265 1 316 1.369 1.423 1.480 1.340 1.407 1,477 1,551 1.629 6% 10% 12% 14% 16% 18% 20% 1.060 1.080 1.100 1.120 1.140 1.160 1.180 1200 1.124 1.166 1210 1.254 1.300 1.346 1.392 1.440 1.191 1.260 1.331 1.405 1.482 1.561 1643 1.728 1262 1.360 1464 1.574 1.689 1.811 1.939 2074 1338 1.469 1.611 1.762 1.925 2.100 2288 2.488 1.419 1.587 1.772 1.974 2.195 2436 2.700 2.986 1.504 1.714 1.949 2211 2502 2826 3.185 3.583 1594 1.851 2.144 2.476 2853 3.278 3.759 4.300 1.689 1.999 2.358 2.773 3.252 3.803 4.435 5.160 1.791 2.159 2694 3.106 3707 4.411 5234 6.192 1.898 2.332 2853 3479 4226 6.117 6.176 7.43 2012 2518 3.138 3.896 4.818 5.936 7.288 8.916 2.133 2.720 3.452 4.363 5.492 6.886 8.699 10.699 2261 2.937 3.797 4.887 6.261 7.988 10.147 12 839 2397 3.172 4.177 5.474 7.138 9.266 11 974 15.407 3.207 4661 6.727 9.646 13.743 19.461 27393 38.338 4.292 6 848 10.836 17.000 26.462 40.87462.669 95.396 5.743 10.063 17 449 29.960 50.950 85.850143,371 237376 10 286 21.725 45.259 93.051 188.884378.721 750 378 1.469.772 1.243 1.268 1.294 1.319 1.346 1.384 1.426 1.469 1.513 1.558 1.539 1.601 1.665 1.732 1.801 1.710 1.796 1.886 1.980 2079 Period 20 Period 25 Period 30 Period 40 1.486 1.641 1.811 2 208 1.806 2.094 2427 3262 2. 191 2.666 3.243 4.801 2.653 3.386 4.322 7.040