E12-33A (similar to) Consider how Golden Valley, a popular ski resort, could use capital budgeting to decide whether the $85 milion Stream Pak Lodge expansion would be a good idman (Click the icon to view the expansion estimates ) Click the icon to view the present value annuity factor table Click the foon to view the present value factor table) (Click the icon to view the future value any factor table) Click the icon to view the future value factor table) Read the requirements Requirement 1. What is the projects NPV is the investment attractive? Why or why not? Calculate the not present value of the expantion Round your answer to the nearest whole dollar Unt parentheses or a minun sign forgivene presente) Net present value of expansion 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 Is the investment attractive? Why? The expansion is project because its NPV is Requirement 2. Assume the expansion has no residual value. What is the project's NPV? Is the investment still attractive? Why or why not? Calculate the project's NPV. (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 Is the investment attractive? Why? Without a residual value, the expansion because of the project's NPV Data Table - Reference Assume that Golden Valley's managers developed the following estimates concerning a planned expansion to its Stream Park Lodge all numbers assumed . 238 Number of additional skiers per day.. 120 Average number of days per year that weather conditions allow skiing at Golden Valley 164 Useful life of expansion (in years) 10 Average cash spent by each skler per day $ Average variable cost of serving each skler per day. 5 146 Cost of expansion $6.500.000 Discount 14% Assume that Golden Valy uses the straight-ine depreciation method and expects the lodge expansion to have a residual value of $900.000 at the end of its ton year life. It has already calculated the average annual cash info per year to be 51.810 560 Pens 19 3% 59 09 IN 10% 12 15% 135 Period 1 09100580091 09020982609200909089 1 0.002 0.17 0.33 Period 2 1970 1942 1943 1888 1859 1832 1733 1730 1696 16471505 1906 1520 Period 2.941 288421292775 27232673 2577 247 2.40223372245 2114 2106 Period 4 3903500371736303543.465 33122170303 2014 2.79 2080 2.59 Periods 28554734580442 4329 42123.903 319 360 343132142127 2991 period 6 579586015417 5242 5015491748034355 41112930853496 2320 period 7 8.7206472623060025786 55125.206230045644204039 3812 3.60 Periodo 7652732570206.73304836210 6727339846004344073 3837 period 9 35661627700743671086802634757505328405260740 4031 Period 10471 09838.530111712273607108105565062162333 102 period 111030078792087605305 7.807 120 5.90 54500290 412 Period 121126510575943850883347508586900514703 4419 Period 131215411 410635 09.153.907103342524910 45 Period 14 1.014 12.000 12010565100025 0.3467602000200 Perlod 1512113111100091126 700 5575 SO4878 Period 2080618361147735001247051470663359208365470 Period 22202210254502041272010.06.2001 8.4.NO Period 105.000 229198017292153711705112501.40730670001776.5174079 Period 4022995221551117011518M 134710510419 Print Done 12-33A (similat i Reference be a good investr er how Golden Valley, a ck the icon to view the e ck the icon to view the ick the icon to view the f F 10% he requirements Fement 1. What is the pro ate the net present value present value.) Periods 196 2% 3% 4% 5% 6% 8% 17% 14% 16% 18% Period 1 0.990 09800971 0.962 0.952 0.943 0.926 0.90908930 877 0.862 0.847 0833 Period 2 0.980 0.961 0943 0.925 0.9070.990 0.8570.826 0.797 0.769 0743 0.7180.694 Period 3 0.971 0.942 0.915 0.88908640 840 0794 07510712 0.675 0.641 06090579 Period 4 0.961 0.924 0.888 0.8560.823 0792 0.735 0683 0.636 0.59205620516 0.482 Period 5 0.951 0906 0.863 0.322 0.784 07470.6810.621 0.587 0.519 0.476 0.437 0.402 period 6 0.942 0.888 0.837 0.790 0.746 07050630 0.5640 6070458 0.4100 370 0.335 Period 7 0.933 0.871 0.813 0.7600.711 0.665 0.5830513 0.452 0.4000354 0.314 0 270 Period 8 0.923 0.853 0.7890731 0.87706270.540 0.467 0.4040351 0.305 0 266 0233 Period 9 0.914 0.837 0.766 07030645 0.692 0.500 0.4240361 0.308 0 2630 2250 194 Period 10 0.906 0.82007440.67606140,5580483 0.38603220 2700 227 0.1910 162 Period 110.896 0.8040.7220650 0.585 0.5270429 0.3600287 0 2370 1950 162 0.136 Period 120.887 0.788 0.701 0.62505570.497 0.397 0.3190 2570 208 0 1680.137 0.112 Period 130.879 0773 0.881 0601 0.530 0.4890.368 0.290 0 2290 1820 145 0 1160093 Period 140.870 0.7680 681 0.57705050442034002830205 0.100 0.125 0.0990078 Period 15 0.861 0.743 0.642 0.556 0.481 0.4170315 0.239 1830 140 0 10000940005 Period 200 8200.673 05540456 0377 0312 02150 1490 1040073 0.0510037 0.028 Period 25 0.780 0.610 0478 0.375 0.295 0233 0.1480.092 0.0690038 00240016 0010 Period 30 0.742 0.6520412030802310174 0.09900570033 0.0200012 0.0070004 Potlod 40 0.672 0450030702080.142 0.097 0.04600220011 0005000300010001 esent value of expansion any number in the edit Print Done neWork (required) 8 of 10 (10 complete) Reference Har ski resort, could sion estimates) - X 4% nt value annuity fact value annuity factor 14% NPV? Is the invest he expansion (Round Periods 1% 2% 3% 5% 5% 8% 10% 12% 16% 20% 18% Period 1 0.990 0.980 0971 0.962 0.952 0943 0.928 0.909 0.893 0.877 0.862 0.847 0.833 Period 2 1.970 1.942 | 1913 1 886 1,859 1833 1783 1736 1.690 1.647 1605 1.566 1628 Period 3 2941 28842829 2775 2723 2.673 2.577 2487 2402 2322 2246 2.174 2106 Period 4 3.902 3.808 3.717 3.630 3.546 3.465 3312 3 170 3037 29142798 2690 2589 Period 5 4.853 4713 45804452 43294212 3.993 3.791 3.605 3433 | 3274 3.127 2991 Period 6 5 795 5.601 5.417 5 242 60764917 46234355 4 111 3.889 3.685 3.498 3326 Period 7 6.728 6.472623060026786 5582 6.2004 86846644208 4039 3.812 3.605 Period 8 76527325 7020 673364636210 6747 5 335 4 908 4639 4344 4078 3.837 Period 9 8.500 8. 162778674367 108 6.8026247 5.750 63284946 4607 4303 4031 Period 10 9.471 8.9838.530 8.111 77227.380 6710 6.1456660 5216 4833 4494 4 192 Period 11 10 368 0.78792538760830678877439849569386.453 5029 4856 4327 Period 12 11 255 10.575995493858 8638.384 7.5366814819466605.197 4793 4.439 Period 131213411 348 10 635 9.98893943.86379047.103642458425342 4.910 4533 Period 1413.00412.108 11.29610563 9.89992068.244 236766286002 6468 5.008 4811 Period 1513885 12.349 1193811.118 10 38097128.5597605811 8142 5675 5.092 4676 period 20 1804616 36 1487713590 12 462 114709818951474896.8235929 5.353 4870 Period 25 22 0231952317413 15.622 14.094 12783 10.675907778436873 6.097 6.467 4.943 Period 30 25 80822.39819 800 17.20215 372 13.765 11 258042705670036177 5517 4.979 4.997 Period 40 32 836 27.355 23.115 19 793 17:159 160481.9259.779824471056 2336548 as and then click Chel Prin Done 8 of 10 (10 complete) to) i Reference - Epular ski resort, pansion estimates esent value annuity Cure value annuity f 6% 20 1% 1.010 1.020 1.030 1.041 1.051 2% 1.020 1.040 1061 1.082 1.104 1.126 1 149 1.172 1.195 1219 5% 1.050 1.103 1.158 1216 1276 2.488 Penods 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 Period 20 Period 25 Period 30 Period 40 ect's NPV? Is the id of the expansion 1062 1.072 1083 1,094 1.105 1.116 1.127 1.138 1.149 1 161 1220 1 282 1 348 1439 3% 4% 1.030 1040 1061 1,082 1.093 1.125 1.126 1.170 1.159 1.217 1.194 1 255 1230 1.316 1.267 1 369 1.306 1.423 1344 1480 1.384 1.539 1.426 1 001 1469 1 685 1513 1732 1.558 1.801 1806 2191 2094 2.688 2427 3:243 3.202 4303 1 340 1407 1.477 1.551 1629 1.710 1.798 1 886 1980 2079 8% 10% 12% 14% 16% 78% 1.060 1.080 1.100 1.120 1.140 1.160 1,180 1200 1.124 1.166 1.210 1.254 1.300 1346 1392 1.440 1.191 1.260 1 331 1.405 1.482 1.561 1.643 1.728 1262 1360 1.464 1.574 1.689 1 811 1939 2074 1.338 1.469 1.611 1.762 1.925 2.100 2.289 1419 1.587 1772 1974 2 195 2436 2.700 2.986 1.504 1.714 1949 2 211 2502 28263185 3683 1594 1 851 2144 2.476 2853 3278 3759 4.300 1.689 1999 2358 2773 3.252 3803 4435 5.160 1.791 2 159 2.594 3.106 3.707 4,411 5.234 6 192 1.898 2.332 2853 3479 4220 6.117 6 175 7.430 20122518 3.138 3.890 4818 5.936 7 298 8916 2133 2720 3.452 4303 5492 6.896 8,899 10.899 2.251 2937 a 797 4887 6.251 7.968 10.147 12.839 2397 3172 4 1775 474 7 138 9.266 119 3207 48518727954513743 10.451 27.390 39 338 4292 6 848 10 83517000 26.46240874 82.609 95390 6.743 10 063 17 449 20900 50.950 95850 143371 237.378 1028521725 45 250 3051168.884378 7217803781489.772 1243 1.268 1 294 1.310 1 346 1436 1041 1 811 2208 2.663 3.328 4322 7040 elds and then click Print Done DAN