Homework: HW #7 - Chapter 12 9 of 9 (a complete) HW Score: 67.22%, 6.72 Score: 0 of 2 pts E12-33A (similar to) 5 Question He i Data Table Consider how Pine Valley, a popular ski resort, could use capital budgeting to decide whether the $8 milion Show Park Lodge expansion would be a good investment. (Click the iconi lo view the expansion eslimales.) (Click the icon to view the present value annuity factor tablo) (Click the icon to view the fulure value annuity factor table! (Click the icon to view the procent value factor table.) Click the icon to view the fulure value factor table Assume that Fine Valley's managers developed the following estimates concerning a planned expansiunto ils Snow Park Lodge (all numbers Assumadi: Read the requiremante Requirement 1. What is the proces NPV? Is the investment attractive? Why or why not? Calculate the nearesant value of the expansion Round your answer to the nearest whola dollar. Use parentheses or a minus sign for a negative nat present As) Net present value of expansion $ Number of additional skiera per day... Average number of days per year that waathar conditions allow sking at Pra Valley Useful life of expansion (in years... Average cash spert by each sker par day ...........S Average variable cost of serving each skiur per day ....S Cost of expansion ........S 8,000,000 Discount rate Assume that fire Valley uses the straight ire depreciation method and expects the lodge expansion to have a residual value of $750.000 at the end of ts cight-year lite. It has alady calculated the avcrage annual nel cash inton per year to be $2.021.375. 140 0 Reference 0 Reference Future Value of Annully of $1 8 9910% 182838485 12% 14% 16% 13% 20 20% 0.633 GLEN 0.572 0.442 0.402 1.30 2.000 3.091 308 2.184 3.248 3310 3.5. 1572 3.640 5.418 52N 538 5.309 6.165 Present Value of $1 Periode 19% 2% 3% 4% 5% 6% 10% 12% 14% 16% 15% 1 0.BO .D 0.9710862 392 613 00 003 DAT 0852 0.17 0.912 0.361 11.94311.925 1937 O.R C.X: 0.805 11.797 17:21 0743 0.71 0.071 0.212 0.915 089 0881 0.810 0.784 0.751 0.712 0.875 0.811 0.BUD 0.961 0.904 11.885 1125 112 TOUC.TA! 01.643 1163 01:30 0552 0.51 0851 GEOB 0.883 02 0.764 0247 0.1 0.621 10.587 05190678 0.942 .32 0.837 0.780 0.746 0.705 .530 0.564 0.507 0.45 04100.370 0.923 0.571 0.313 0.78 0.711 0.866 .923 0.513 042 04300354 C.593 0.731 067 0.627 0.510 0.16T10:101 035 03-5 0914 C.SI 0.76 0.70 0646 0.562 c.2000424 0.261 00 0263 0.005 C..20 | 078 06140558 0.63 0.583 0.322 02700277 O C.524 .772 060 0556 057 C470 0.30 OZ 1257 0196 0.887 C.7a 0.701 0.625 0557 0.497 0.30 0257 026 0.168 0879 0.773 0681 0601 95040 C 0.299 0299 DW 0145 + 0.870 0.78 0.681 0.677 056 042 0.40 0.283 0205 0.80 0125 0.299 15 8 1 .743 0542055 0451 02170 .315 0.239 018 040 0108 0. 20 0.20 0.573 0. 01 7 0212 .25 0.149 01114 Dana 19 .ar 25 0.780 0.30 0.475 0.375 026 0.283 0.125 0.692 0059 00 0.0200.018 23 142 .2 11412 12 12 174 .29 0.067 CZ! 111211311120. 49 0.872 0.453 0.3070208 01120097 MB 0.002 0. 0 0 06 0.003 0.01 3. 4.375 5520 5.697 582 2.394 05499.89T 5923 10.23 7.716 9457 11.38 135791 8.892 9.212 8553 91.7 10.850 12 169 11.454 12.305 2.141 2981 2.183 3.440 4.779 43124 8.353 6.810 7.154 8506 89TT 10.723 11.44 12.142 12:00 1123 4.240 15.327 16.499 16.25 17.11 1 1 20.7.19 17.89 19.537 21.321 23621 20655 2145 32.150 27.271 10.050 14931 9521 28.029 322 35.756 42 219 49.497 45.672 50.212 59.198 37280 (3.512 $1.65060865 7095 720001 5116. 3 14817 133 394 18871 229.214 312820 147981 2413 356.77 530.312 148 1,121 850 770 1,842 0252330.757 4,183.215 7,813 858 12 ans 12.30 13.502 13485 14.308 16.52T +4207 5917 17.713 21.354 24.523 13. B1 14.487 14 ST2 16 -45 18 870 14.972 18882 21.495 24.25 23 276 3731 46.762 108 710 71325 164 742 259.57 30. 51 16. 14.550 15.974 17.283 24.297 32.000 43568 89.402 20.024 15618 17.00 18.689 am 38.459 47 55 75401 21.579 331 28.243 31.772 57.275 98.347 1,494 442.543 0.001 42.Bas 58.385 2 8 6230 120.000 Print Done Print Done Semang Answer Homework: HW #7 - Chapter 12 9 of 9 (a complete) HW Score: 67.22%, 6.72 Score: 0 of 2 pts E12-33A (similar to) 5 Question He i Data Table Consider how Pine Valley, a popular ski resort, could use capital budgeting to decide whether the $8 milion Show Park Lodge expansion would be a good investment. (Click the iconi lo view the expansion eslimales.) (Click the icon to view the present value annuity factor tablo) (Click the icon to view the fulure value annuity factor table! (Click the icon to view the procent value factor table.) Click the icon to view the fulure value factor table Assume that Fine Valley's managers developed the following estimates concerning a planned expansiunto ils Snow Park Lodge (all numbers Assumadi: Read the requiremante Requirement 1. What is the proces NPV? Is the investment attractive? Why or why not? Calculate the nearesant value of the expansion Round your answer to the nearest whola dollar. Use parentheses or a minus sign for a negative nat present As) Net present value of expansion $ Number of additional skiera per day... Average number of days per year that waathar conditions allow sking at Pra Valley Useful life of expansion (in years... Average cash spert by each sker par day ...........S Average variable cost of serving each skiur per day ....S Cost of expansion ........S 8,000,000 Discount rate Assume that fire Valley uses the straight ire depreciation method and expects the lodge expansion to have a residual value of $750.000 at the end of ts cight-year lite. It has alady calculated the avcrage annual nel cash inton per year to be $2.021.375. 140 0 Reference 0 Reference Future Value of Annully of $1 8 9910% 182838485 12% 14% 16% 13% 20 20% 0.633 GLEN 0.572 0.442 0.402 1.30 2.000 3.091 308 2.184 3.248 3310 3.5. 1572 3.640 5.418 52N 538 5.309 6.165 Present Value of $1 Periode 19% 2% 3% 4% 5% 6% 10% 12% 14% 16% 15% 1 0.BO .D 0.9710862 392 613 00 003 DAT 0852 0.17 0.912 0.361 11.94311.925 1937 O.R C.X: 0.805 11.797 17:21 0743 0.71 0.071 0.212 0.915 089 0881 0.810 0.784 0.751 0.712 0.875 0.811 0.BUD 0.961 0.904 11.885 1125 112 TOUC.TA! 01.643 1163 01:30 0552 0.51 0851 GEOB 0.883 02 0.764 0247 0.1 0.621 10.587 05190678 0.942 .32 0.837 0.780 0.746 0.705 .530 0.564 0.507 0.45 04100.370 0.923 0.571 0.313 0.78 0.711 0.866 .923 0.513 042 04300354 C.593 0.731 067 0.627 0.510 0.16T10:101 035 03-5 0914 C.SI 0.76 0.70 0646 0.562 c.2000424 0.261 00 0263 0.005 C..20 | 078 06140558 0.63 0.583 0.322 02700277 O C.524 .772 060 0556 057 C470 0.30 OZ 1257 0196 0.887 C.7a 0.701 0.625 0557 0.497 0.30 0257 026 0.168 0879 0.773 0681 0601 95040 C 0.299 0299 DW 0145 + 0.870 0.78 0.681 0.677 056 042 0.40 0.283 0205 0.80 0125 0.299 15 8 1 .743 0542055 0451 02170 .315 0.239 018 040 0108 0. 20 0.20 0.573 0. 01 7 0212 .25 0.149 01114 Dana 19 .ar 25 0.780 0.30 0.475 0.375 026 0.283 0.125 0.692 0059 00 0.0200.018 23 142 .2 11412 12 12 174 .29 0.067 CZ! 111211311120. 49 0.872 0.453 0.3070208 01120097 MB 0.002 0. 0 0 06 0.003 0.01 3. 4.375 5520 5.697 582 2.394 05499.89T 5923 10.23 7.716 9457 11.38 135791 8.892 9.212 8553 91.7 10.850 12 169 11.454 12.305 2.141 2981 2.183 3.440 4.779 43124 8.353 6.810 7.154 8506 89TT 10.723 11.44 12.142 12:00 1123 4.240 15.327 16.499 16.25 17.11 1 1 20.7.19 17.89 19.537 21.321 23621 20655 2145 32.150 27.271 10.050 14931 9521 28.029 322 35.756 42 219 49.497 45.672 50.212 59.198 37280 (3.512 $1.65060865 7095 720001 5116. 3 14817 133 394 18871 229.214 312820 147981 2413 356.77 530.312 148 1,121 850 770 1,842 0252330.757 4,183.215 7,813 858 12 ans 12.30 13.502 13485 14.308 16.52T +4207 5917 17.713 21.354 24.523 13. B1 14.487 14 ST2 16 -45 18 870 14.972 18882 21.495 24.25 23 276 3731 46.762 108 710 71325 164 742 259.57 30. 51 16. 14.550 15.974 17.283 24.297 32.000 43568 89.402 20.024 15618 17.00 18.689 am 38.459 47 55 75401 21.579 331 28.243 31.772 57.275 98.347 1,494 442.543 0.001 42.Bas 58.385 2 8 6230 120.000 Print Done Print Done Semang