do all the requirements

\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 \$1 } \\ \hline Periods & 1% & 2% & 3% & 4% & 5% & 6% & 8% & 10% & 12% & 14% & 16% & 18% & 20% \\ \hline Period 1 & 0.990 & 8980 & 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 & 2.106 \\ \hline Period 4 & 3.902 & 3.808 & 3.717 & 3.630 & 3.546 & 3.465 & 3.312 & 3.170 & 3.037 & 2.914 & 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 & 6.728 & 6.472 & 6.230 & 6.002 & 5. & 5.5 & 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 & 4.639 & 4.344 & 4.078 & 3.837 \\ \hline eriod 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 & 6.710 & 145 & 5.650 & 5.216 & 4.833 & 4.494 & 4.192 \\ \hline Period 11 & 10.368 & 9.787 & 9.253 & 8.760 & 8 & 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 & 4.793 & 4.439 \\ \hline Period 13 & 12.134 & 11.348 & 10.635 & 9.986 & 9.394 & 8.853 & 7.904 & 7.103 & 6.424 & 5.842 & 5.342 & 4.910 & 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 & 5.008 & 4.611 \\ \hline Period 15 & 13.865 & 12.849 & 11.938 & 11.118 & 10.380 & 9.712 & 8.559 & 7.606 & 6.811 & 6.142 & 5.575 & 5.092 & 4.675 \\ \hline Period 20 & 18.046 & 16.351 & 14.877 & 13.590 & 12.462 & 11.470 & 9.818 & 8.514 & 7.469 & 6.623 & 5.929 & 5.353 & 4.870 \\ \hline & 22.0 & 19.523 & 17.413 & & & 12.783 & 10.675 & 9.077 & 7.843 & 6.873 & 6.097 & 5.467 & 4.948 \\ \hline Pe & 25.808 & 22.396 & 19.600 & 17.292 & 15.372 & 13.765 & 11.258 & 9.427 & 8.055 & 7.003 & 6.177 & 5.517 & 4.979 \\ \hline Period 40 & 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 \\ \hline \end{tabular} \begin{tabular}{|c|c|c|c|c|c|c|c|c|c|c|c|c|c|} \hline \multicolumn{14}{|c|}{ Future Value of \$1 } \\ \hline Periods & 1% & 2% & 3% & 4% & 5% & 6% & 8% & 10% & 12% & 14% & 16% & 18% & 20% \\ \hline 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 \\ \hline Period 2 & 1.020 & 1.040 & 1.061 & 1.082 & 1.103 & 1.124 & 1.166 & 1.210 & 1.254 & 1.300 & 1.346 & 1.392 & 1.440 \\ \hline Period 3 & 1.030 & 1.061 & 1.093 & 1.125 & 1.158 & 1.191 & 1.260 & 1.331 & 1.405 & 1.482 & 1.561 & 1.643 & 1.728 \\ \hline 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 \\ \hline Period 5 & 1.051 & 1.104 & 1.159 & 1.217 & 1.276 & 1.338 & 1.469 & 1.611 & 1.762 & 1.925 & 2.100 & 2.288 & 2.488 \\ \hline Period 6 & 1.062 & 1.126 & 1.194 & 1.265 & 1.340 & 1.419 & 1.587 & 1.772 & 1.974 & 2.195 & 2.436 & 2.700 & 2.986 \\ \hline Per & 72 & 1.149 & 1.230 & 1.3 & 1.407 & 1.504 & 1.714 & 1.949 & 2.211 & 2.502 & 2.826 & 3.185 & 3.583 \\ \hline Period 8 & 1.083 & 1.172 & 1.267 & 1.369 & 1.477 & 1.594 & 1 & 2.144 & 2.476 & 2.853 & 3.278 & 3.759 & 4.300 \\ \hline Period 9 & 1.094 & 1.195 & 1.305 & 1.423 & 1.551 & 1.689 & 1.999 & 2.358 & 2.773 & 3.252 & 3.803 & 4.435 & 5.160 \\ \hline Period 10 & 1.105 & 1.219 & 1.344 & 1.480 & 1.629 & 1.7 & 2.159 & 2.594 & 3.106 & 3.707 & 4.411 & 5.234 & 6.192 \\ \hline & 1.116 & 1.243 & 1.384 & 1.539 & 1.710 & 1.898 & 2.332 & 2.853 & & & 5.117 & 6.176 & 7.430 \\ \hline Period 12 & 1.127 & & 1.426 & 1.601 & 1.796 & 2.012 & 2.518 & 3.138 & 3.896 & 4.818 & 5.936 & 7.288 & 8.916 \\ \hline Period 13 & 1.138 & 1.294 & 1.469 & & 1.886 & 2.133 & 2.720 & 3.452 & 4.363 & 5.492 & 6.886 & 8.599 & 10.699 \\ \hline Period 14 & 1.149 & 1.319 & 1.513 & 1.732 & 1.980 & 2.261 & 2. & 3.797 & 4.887 & 6.261 & 7.988 & 10.147 & 12.839 \\ \hline Period 15 & 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 \\ \hline Period 20 & 1.220 & 1.486 & 1.806 & 2.191 & 2.653 & 3.207 & 4.661 & 6.727 & 9.646 & 13.743 & 19.461 & 27.393 & 38.338 \\ \hline & 1.282 & 1.641 & 2.094 & 2.666 & 3.386 & & 6.848 & 10.835 & 17.000 & 26.462 & 40.874 & 62.669 & 95.396 \\ \hline Period 30 & 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 \\ \hline Period 40 & 1.489 & 2.208 & 3.262 & 4.801 & 7.040 & 10.286 & 21.725 & 45.259 & 93.051 & 188.884 & 378.721 & 750.378 & 1,469.772 \\ \hline \end{tabular} 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? \begin{tabular}{|l|c|c|c|c|c|c|c|c|c|c|c|c|c|} \hline \multicolumn{10}{|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 & 0.833 \\ 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 & 0552 & 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 & 0.627 & 0.540 & 0.467 & 0.404 & 0.351 & 0.305 & 0.266 & 0.233 \\ Period 9 & 0.914 & 0.837 & 0.766 & 0.703 & 0.645 & 0.592 & 0.500 & 0.424 & 0.361 & 0.308 & 0.263 & 0.225 & 0.194 \\ 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 & 0.162 \\ Period 11 & 0.896 & 0.804 & 0.722 & 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 & 0.555 & 0.481 & 0.417 & 0.315 & 0.239 & 0.183 & 0.140 & 0.108 & 0.084 & 0.065 \\ Period 20 & 0.820 & 0.673 & 0.554 & 0.456 & 0.377 & 0.312 & 0.215 & 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 & 0.231 & 0.174 & 0.099 & 0.057 & 0.033 & 0.020 & 0.012 & 0.007 & 0.004 \\ Period 40 & 0.672 & 0.453 & 0.307 & 0.208 & 0.142 & 0.097 & 0.046 & 0.022 & 0.011 & 0.005 & 0.003 & 0.001 & 0.001 \\ \hline \end{tabular} Assume that Pine Valley's managers developed the following estimates concerning a planned expansion to its Spring Park Lodge (all numbers assumed): \begin{tabular}{|c|c|} \hline Number of additional skiers per day .......... & 125 \\ \hline & 162 \\ \hline Useful life of expansion (in years).. & \\ \hline Average cash spent by each skier per day........ $ & 240 \\ \hline Average variable cost of serving each skier per day . \$ & 145 \\ \hline Cost of expansion........ & 8,000,000 \\ \hline Discount rate & 12% \\ \hline \multicolumn{2}{|c|}{\begin{tabular}{l} Assume that Pine 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 eight-year life. It has already calculated the average annual \\ net cash inflow per year to be $1,923,750. \end{tabular}} \\ \hline \end{tabular} \begin{tabular}{|c|c|c|c|c|c|c|c|c|c|c|c|c|c|} \hline \multicolumn{14}{|c|}{ Future Value of Annuity of \$1 } \\ \hline Periods & 1% & 2% & 3% & 4% & 5% & 6% & 8% & 10% & 12% & 14% & 16% & 18% & 20% \\ \hline Period 1 & 1.000 & 1.000 & 1.000 & 1.000 & 1.000 & 1.000 & 1.000 & 1.000 & 1.000 & 1.000 & 1.000 & 1.000 & 1.000 \\ \hline Period 2 & 2.010 & 2.020 & 2.030 & 2.040 & 2.050 & 2.060 & 2.080 & 2.100 & 2.120 & 2.140 & 2.160 & 2.180 & 2.200 \\ \hline Period 3 & 3.030 & 3.060 & 3.091 & 3.122 & 3.153 & 3.184 & 3.246 & 3.310 & 3.374 & 3.440 & 3.506 & 3.572 & 3.640 \\ \hline Period 4 & 4.060 & 4.122 & 4.184 & 4.246 & 4.310 & 4.375 & 4.506 & 4.641 & 4.779 & 4.921 & 5.066 & 5.215 & 5.368 \\ \hline Period 5 & 5.101 & 5204 & 5.309 & 5.416 & 5.526 & 5.637 & 5.867 & 6.105 & 6.353 & 6.610 & 6.877 & 7.154 & 7.442 \\ \hline Period 6 & 6.152 & 6.308 & 6.468 & 6.633 & 6.802 & 6.975 & 7.336 & 7.716 & 8.115 & 8.536 & 8.977 & 9.442 & 9.930 \\ \hline Period 7 & 7.214 & 7.434 & 7.662 & 7.898 & 8.142 & 8.394 & 8.923 & 9.487 & 10.089 & 10.730 & 11.414 & 12.142 & 12.916 \\ \hline 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 \\ \hline Period 9 & 9.369 & 9.755 & 10.159 & 10.583 & 11.027 & 11.491 & 12.488 & 13.579 & 14.776 & 16.085 & 17.519 & 19.086 & 20.799 \\ \hline Period 10 & 10.462 & 10.950 & 11.464 & 12.006 & 12.578 & 13.181 & 14.487 & 15.937 & 17.549 & 19.337 & 21.321 & 23.521 & 25.959 \\ \hline Period 11 & 11.567 & 12.169 & 12.808 & 13.486 & 14.207 & 14.972 & 16.645 & 18.531 & 20.655 & 23.045 & 25.733 & 28.755 & 32.150 \\ \hline Period 12 & 12.683 & 13.412 & 14.192 & 15.026 & 15.917 & 16.870 & 18.977 & 21.384 & 24.133 & 27.271 & 30.850 & 34.931 & 39.581 \\ \hline Period 13 & 13.809 & 14.680 & 15.618 & 16.627 & 17.713 & 18.882 & 21.495 & 24.523 & 28.029 & 32.089 & 36.786 & 42.219 & 48.497 \\ \hline Period 14 & 14.947 & 15.974 & 17.086 & 18.292 & 19.599 & 21.015 & 24.215 & 27.975 & 32.393 & 37.581 & 43.672 & 50.818 & 59.196 \\ \hline Period 15 & 16.097 & 17.293 & 18.599 & 20.024 & 21.579 & 23.276 & 27.152 & 31.772 & 37.280 & 43.842 & 51.660 & 60.965 & 72.035 \\ \hline Period 20 & 22.019 & 24.297 & 26.870 & 29.778 & 33.066 & 36.786 & 45.762 & 57.275 & 72.052 & 91.025 & 115.380 & 146.628 & 186.688 \\ \hline Period 25 & 28.243 & 32030 & 36.459 & 41.646 & 47.727 & 54.865 & 73.106 & 98.347 & 133.334 & 181.871 & 249.214 & 342.603 & 471.981 \\ \hline Period 30 & 34.785 & 40.568 & 47.575 & 56.085 & 66.439 & 79.058 & 113.283 & 164.494 & 241.333 & 356.787 & 530.312 & 790.948 & 1,181.882 \\ \hline Period 40 & 48.886 & 60.402 & 75.401 & 95.026 & 120.800 & 154.762 & 259.057 & 442.593 & 767.091 & 1,342.025 & 2,360.757 & 7,4,163.213 & 7,343.858 \\ \hline \end{tabular}