Homework: Chapter 26 Homework Question 17, S26-12 (si... Part 1 of 2 HW Score: 48.77%, 12.19 of 25 points Score: 0 of 2 Save Consider how Preston Valley River Park Lodge could use capital budgeting to decide whether the $13,000,000 River Park Lodge expansion would be a good investment. Assume Preston Valley's managers development F: (Click the icon to view the estin (Click the icon to view additiona Data Table 2 (Click the icon to view Present Value of $1 table.) Bclick the icon to view. Drocant Value of Ordinary Annuity of $1 table.) fest dollar)? Is the investment attractive? Why or 116 skiers Calculate the net present value of th dollar.) 149 days Years 12 years Years 1 - 12 Present value of an Number of additional skiers per day Average number of days per year that weather conditions allow skiing at Preston Valley Useful life of expansion (in years) Average cash spent by each skier per day Average variable cost of serving each skier per day Cost of expansion Discount rate $ 240 Year 12 Present value of re 83 Total PV of cash in 13,000,000 Year 0 Initial investment 8% Net present value Print Done Enter any number in the edit fields and then click Check Answer. Help Me Solve This DemoDocs Example Get More Help Clear All Check Answer Homework: Chapter 26 Homework Question 17, S26-12 (si... Part 1 of 2 HW Score: 48.77%, 12.19 of 25 points Score: 0 of 2 Save Consider how Preston Valley River Park Lodge could use capital budgeting to decide whether the $13,000,000 River Park Lodge expansion would be a good investment. Assume Preston Valley's managers developed the following estimates concerning the expansion: .: (Click the icon to view the estimates.) (Click the icon to view additional information.) (Click the icon to view Present Value of $1 table.) (Click the icon to view Present Value of Ordinary Annuity of $1 table.) What is the project's NPV (round to nearest dollar)? Is the investment attractive? Why or why not? .... Calculate the net present value of the expansion. (Enter any factor amounts to three decimal places, X.XXX. Round to the nearest whole dollar.) Net Cash Annuity PV Factor PV Factor (i=8%, Years Inflow (i=8%, n=12) n=12) Present Value Years 1 - 12 Present value of annuity Year 12 Present value of residual value Total PV of cash inflows Year 0 Initial investment Net present value of expansion Enter any number in the edit fields and then click Check Answer. Help Me Solve This DemoDocs Example Get More Help Clear All Check Answer TIL Homework: Chapter 26 Homework Question 17, S26-12 (si... Part 1 of 2 HW Score: 48.77%, 12.19 of 25 points Score: 0 of 2 Save Save Consider how Preston Valley River Park Lodge could use capital budgeting to decide whether the $13,000,000 River Park Lodge expansion would be a good investment. Assume Preston Valley's managers developed the following estimates concerning the expansion: (Click the icon to view the estimates.) (Click the icon to view additional information.) (Click the icon to view Present Value of $1 table.) (Click the icon to view Present Value of Ordinary Annuity of $1 table.) What is the project's NPV (round to nearest dollar)? Is the investment attractive? Why or why not? More Info Calculate the net present value of the expl Years Years 1 - 12 Present value of annuity Year 12 Present value of residual Total PV of cash inflows Assume that Preston Valley uses the straight-line depreciation method and expects the lodge expansion to have a residual value of $1,000,000 at the end of its twelve-year life. They have already calculated the average annual net cash inflow per year to be $2,713,588. Year 0 Initial investment Net present value of exp Print Done Enter any number in the edit fields and then click Check Answer. Help Me Solve This DemoDocs Example Get More Help Clear All Check Answer A Save - X active? Why or Homework: Chapter 26 Question 17, S26-12 (si... HW Score: 48.77%, 12.19 of 25 points Hom Reference Consider how Pre whether the $13, Preston Valley's Present Value of $1 (Click the ico Periods 1% 2% 3% 4% 5% 6% 7% 8% 9% 10% 12% 14% 15% 16% 18% 20% (Click the ico Period 1 0.990 0.980 0.971 0.962 0.952 0.943 0.935 0.926 0.917 0.909 0.893 0.877 0.870 0.862 0.847 0.833 Period 2 0.980 0.961 0.943 0.925 0.907 0.890 0.873 0.857 0.842 0.826 0.797 0.769 0.756 0.743 0.718 0.694 Period 3 0.971 0.942 0.915 0.889 0.864 0.840 0.816 0.794 0.772 0.751 0.712 0.675 0.658 0.641 0.609 0.579 Period 4 0.961 0.924 0.888 0.855 0.823 0.792 0.763 0.735 0.708 0.683 0.636 0.592 0.572 0.552 0.516 0.482 Calculate the net Period 5 0.951 0.906 0.863 0.822 0.784 0.747 0.713 0.681 0.650 0.621 0.567 0.519 0.497 0.4760437 0.402 Period 6 0.942 0.888 0.837 0.790 0.746 0.705 0.6660.630 0.596 0.564 0.507 0.456 0.432 0.410 0.370 0.335 Years Period 7 0.933 0.871 0.813 0.760 0.711 0.665 0.623 0.583 0.547 0.513 0.452 0.400 0.376 0.354 0.3140.279 Period 8 0.923 0.853 0.789 0.731 0.677 0.677 0.627 0.582 0.540 0.502 0.467 0.4040.351 0.327 0.305 0.266 0.233 Years 1 - 12 PI Period 9 0.914 0.837 0.766 0.703 0.6450.592 0.544 0.500 0.460 0.424 0.361 0.308 0.284 0.263 0.225 0.194 Period 10 0.905 0.820 0.744 0.676 0.614 0.558 0.508 0.463 0.422 0.386 0.322 0.270 0.247 0.227 0.191 0.162 Year 12 PI Period 11 0.896 0.804 0.722 0.650 0.585 0.527 0.475 0.429 0.388 0.350 0.287 0.237 0.215 0.195 0.162 0.135 TO Period 12 0.887 0.788 0.701 0.625 0.557 0.497 0.444 0.397 0.356 0.319 0.257 0.208 0.187 0.168 0.137 0.112 Period 13 0.879 0.773 0.681 0.601 0.530 0.469 0.415 0.368 0.326 0.290 0.229 0.182 0.163 0.145 0.116 0.093 Year 0 Ini Period 14 0.870 0.758 0.661 0.577 0.505 0.442 0.388 0.340 0.299 0.263 0.205 0.160 0.141 0.125 0.099 0.078 Period 15 0.861 0.743 0.642 0.555 0.481 0.417 0.362 0.315 0.275 0.239 0.183 0.140 0.123 0.108 0.084 0.065 NE Period 16 0.853 0.728 0.623 0.534 0.458 0.394 0.339 0.292 0.252 0.218 0.163 0.123 0.107 0.093 0.071 0.054 Period 17 0.844 0.714 0.605 0.513 0.436 0.371 0.3170.270 0.231 0.1980.146 0.108 0.093 0.080 0.060 0.045 Period 18 0.836 0.700 0.587 0.494 0.416 0.350 0.296 0.250 0.212 0.180 0.130 0.095 0.081 0.069 0.051 0.038 Period 19 0.828 0.686 0.570 0.475 0.396 0.331 0.277 0.232 0.194 0.164 0.116 0.083 0.070 0.060 0.043 0.031 larindan za ACC 170 la un 0001 ACE . Print Done Enter any numbe Help Me Solve This DEMODOS Lampic UCL MIOTC TICIP VIGATI vileck Answer - > Reference re . n 0 12% 14% 0.893 0.877 1.690 1.647 2.402 2.322 3.037 2.914 3.605 3.433 15% 0.870 1.626 2.283 2.855 3.352 16% 0.862 1.605 2.246 2.798 3.274 18% 20% 0.847 0.833 1.566 1.528 2.174 2.106 2.690 2.589 3.127 2.991 et Present Value of Ordinary Annuity of $1 Periods 1% 2% 3% 4% 5% 6% 7% 8% 9% 10% Period 1 0.990 0.980 0.971 0.962 0.952 0.943 0.935 0.926 0.917 | 0.909 Period 2 1.970 1.942 1.913 1.886 1.859 | 1.833 1.808 1.783 1.759 1.736 Period 3 2.941 2.884 2.829 2.775 2.723 2.673 2.624 2.577 2.531 2.487 Period 4 3.902 3.808 3.717 3.630 3.546 3.465 3.387 3.3123.240 3.170 Period 5 4.853 4.713 4.580 4.452 4.329 4.212 4.100 3.993 3.890 3.791 Period 6 5.795 5.601 5.417 5.242 5.076 4.917 4.767 4.623 4.486 4.355 Period 7 6.728 6.472 6.230 6.0025.786 5.582 5.389 5.206 5.033 4.868 Period 8 7.652 7.325 7.020 6.733 6.463 6.210 5.971 5.747 5.535 5.335 Period 9 8.566 8.162 7.786 7.435 | 7.108 6.802 6.515 6.247 5.995 5.759 Period 10 9.471 8.983 8.530 8.111 7.722 7.360 7.024 6.710 6.418 6.145 Period 11 10.368 9.787 9.253 8.760 8.306 7.887 7.499 7.139 6.805 6.495 Period 12 11.255 10.575 9.954 9.385 8.863 8.384 7.943 7.536 | 7.1616.814 Period 13 12.134 11.348 10.635 9.986 9.394 8.853 8.358 7.904 7.487 7.103 Period 14 13.004 12.106 | 11.296 | 10.563 9.899 9.295 8.745 8.244 7.786 7.367 Period 15 13.865 12.849 11.938 11.118 10.380 9.712 9.108 8.559 8.061 7.606 Period 16 14.718 13.578 12.561 11.652 10.838 10.106 9.447 8.851 8.313 7.824 Period 17 15.562 14.292 | 13.166 | 12.166 11.274 10.477 9.763 9.122 8.544 8.022 Period 18 16.398 14.992 | 13.754 | 12.659 11.690 10.828 10.059 9.372 8.756 8.201 Period 19 17.226 15.678 14.324 | 13.134 12.08511.158 10.336 9.604 8.950 8.365 Iparindan 10:21 14077 12 con nuen 4701 CA 4.111 3.889 4.564 4.288 4.9684.639 5.328 4.946 5.6505.216 3.784 4. 160 4.487 4.772 5.019 3.685 4.039 4.344 4.607 4.833 3.498 3.326 3.812 3.605 4.078 3.837 4.303 4.031 4.494 4.192 5.938 6.194 6.424 6.628 6.811 5.453 5.234 5.660 5.421 5.842 5.583 6.002 5.724 6.142 5.847 5.029 4.656 5.197 4.793 5.342 4.910 5.468 5.008 5.575 5.092 4.327 4.439 4.533 4.611 4.675 6.974 6.265 7.120 6.373 7.250 6.467 7.366 | 6.550 7400 5.954 6.047 6.128 6.198 Cnn 5.669 5.749 5.818 5.877 5.1624.730 5.222 4.775 5.273 4.812 5.316 4.844 En Ann OCHA