Homework: Chapter 26.1 Score: 0 of 1 pt S26-12 (similar to) 7 of 10 (5 complete) Consider how Preston Valley Waterfall Park Lodge could use capital budgeting to decide whether the $11,500,000 Waterfall 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 What is the project's NPV (round to nearest dolary is Calculate the net present value of the expansion (Enter any factor amounts to three decimal places, Xxxx Round to the nearest whole dollar) Net Cash Annuity PV Factor PV Factor (1-12% Years Inflow (1-12%, n-12) 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 Not present value of expansion Enter any number in the edit fields and then click Check Answer CA 1 par remaining a * Type here to search eting to decide whether the $11,500,000 (Click the icon to view Present Value of i Data Table 120 skiers 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 151 days 12 years 238 $ 84 11,500,000 12% Print Done Clear All a More Info Assume that Preston Valley uses the straight-line depreciation method and expects the lodge expansion to have a residual value of $850,000 at the end of its twelve-year life. They have already calculated the average annual net cash inflow per year to be $2,790,480. Print Done Print Done Clear All RI a Chip Reference Period 1 Present Value of Ordinary Annuity of 51 Periods 1% 2% 3% 4% 5% 6% 7% 8% 9% 10% 12% 14% 15% 16% 15% 20% 0990 0.980 0.971 09620.952 0943 09350 926 0917 0909 08900877 0.870 0.362 0847 0833 Period 2 1970 1942 1913 1886 1869 1833 1808 1783 1759 1736 1 690 1647 1626 16051566 1528 Period 3 2941 288428292775 27232673 2624 25772531 2487 2402 2322 2283 2246 2.174 2.106 Period 4 3902 3.808 3.7173630 3.54634653387 3312 324031703037 2014 2855 2798 2.890 2589 Period 5 4.853 4713 4.580 4452 43294212 4100 3.993 3.9903.791 3605 3433 3352 3.274 3.1272991 Period 6 5795 5.601 5417 5242 50764917 4 767 4.62344864355 4 111 3889 3.7843685 3:4983325 Period 7 67286.47262306 002 5.786 5582 53095206 503348684564 4288 4160403938123605 Period 8 7652 7325 70206733 64636210 5971 6747 5535 5336 4968 46394487 434449783837 Period 9 8.566 816277867435 7.100 8302 65156247 5995 57595328 4945 4772 480743034031 Period 10 94718.9838630 8.111 7722736070246710 6418 6145 5650 5216 5019 483344944192 Period 11 10.368 9.787 9253 87608.3067887749971396 805 6.495 5938 5453 5 234 50294656 4327 Period 12 11 255 1057599549,385 3863 8.384 794375367 151 6.814 6.194 56805421 5197 47904499 Period 13 12134 1348 10.635 998693948853 8368790474877103642453425583 53424910 533 Period 14 13.00412100 11296 10 563 0899 9.296874582447780736766286002 57245468 5.006 4611 Period 1563.865 1294911 93811.110 110 3001 9712 9.100856980170064166142158471 5575 1.50924575 Print Done a O 2 1 top F + C % & 7 5 O 6 on 9 Y U R T P is F G H C L 26.1 7 of 10 (5 complete) Reference T Present VUE U Periods 1% 2% 3% 4% 5% 6% 7% 8% 9% 10% 12 149 15% 16% 18% 20% Period 1 099009800971 0962 0952 0943 0.935 0.926 0917 0.909 08930877 0.870 0852 0.847 ORU Period 2 0990 0961 0943 0.925 0.9070890 0.873 0.8570842 0.826 07970.7690 756 0.7430718 0694 Period 3 0.971 0942 0915 0.889 0.854 08400816 07940772 0.7510712 0.675 08580641 06090579 Period 4 0961 0.9240888 0.855 0.823 0792 07630.735 0708 0.583 06360592 0.572 0.56205160482 Periods 0951 0904 0853 0822 078407470793 0681 0.6500621 0567 0519 0497 0.4760437 0402 Period 6 0942 0.8880837 0790 0.7450705 0666 0630 059605640507 0456 0.432 04100370 0.335 Period 7 0.8710013 0750 0.71106650523 0.58305470.513 0.452 0.4000375 0.354 0.314 0279 Period 8 0923 0853 0789 0.731 0677062705820.540 0 502 046704040.3510327 03050265 0233 Period 9 0914 08370 766 0.7030.545 0592 0544 050004600420 0.30 0.308 02840263 02250194 Period 10 0905 0.8200744067606146.550 0.500 0467042203860222 0.270 02470 227 0.1910162 Period 11 08960804 07220050 055 05270475 0429 0.3880 350 027 0232 0215 0.1950.1620135 Period 12 087 0788 07010625055704970444 0,397 0356 0319 025702080.1870 163 0.132.112 Period 13 0.879 0.773 06810601053004690415 0.368 0 32602900229 01820 1830145 0.116 0093 Period 1408700.758 0661 0577050504420388 0340 0.299 0 2030 2050.15001410 125 0.0990070 Period 15 0861 0743 06420 555 0461 0417030203150.275 0239 0183 0.140 0.12 0.10800040066 Print Done O 83F 1 bet se % & C 5 6 7 00 9 o 2 1 T Y U O PE ]
