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Lodge could use capital budgeting to decide whether the $11,500,000 Waterfall Park gers developed the following estimates concerning the expansion: ght-line depreciation method and expects

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Lodge could use capital budgeting to decide whether the $11,500,000 Waterfall Park gers developed the following estimates concerning the expansion: ght-line depreciation method and expects the lodge expansion to have no residual value per year is expected to be $2,688,686. Click the icon to view the Present Value of Ordinand Data Table 119 skiers 143 days Number of additional skiers per day Average number of days per year that weather conditions allow skiing at White 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 8 years 235 par 77 11,500,000 Discount rate 10% Print Done fields and then click Check Answer Clear All C Homework: Week Eight : Chapter 11 : Exercises Save Score: 0 of 1 pt 9 of 19 (2 complete) HW Score: 10.53%, 2 of 19 pts S26-12 (similar to) Question Help Consider how White 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 White Valley's managers developed the following estimates concerning the expansion: (Click the icon to view the estimates.) Assume that White Valley uses the straight-line depreciation method and expects the lodge expansion to have no residual value at the end of its eight-year life. The project's average annual net cash inflow per year is expected to be $2,688,686 (Click the icon to view the Present Value of $1 table.) (Click the icon to view the 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 the factor to three decimal places, X.XXX. Round your calculations to the nearest whole dollar.) Net Cash Annuity PV Factor PV Factor Present Inflow (i=10%, n=8) (-10%, n=8) Value 1-8 Present value of annuity Years 0 Initial investment Net present value of expansion Incorrec V1) 0/1) 0/1) 0/1) ? Enter any number in the edit fields and then click Check Answer 1 part remaining Clear All Check

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