Next Question Consider how White Valley River Park Lodge could use capital budgeting to decide whether the $12,000,000 River Park Lodge expansion would be a good Click the icon to view Present Value of 51 table) investment. Assume White Valley's managers developed the following estimates (Click the icon to view Present Value of Ordinary Annulty of S1 table) concerning the expansion (Click the icon to view the estimates.) What is the project's NPV (round to nearest dollar)? Is the investment attractive? Why or why not? (Click the icon to view additional information) ewe Incom D Calculate the net present value of the expansion (Enter any factor amounts to the decimal places, XXX Round to the nearest whole dolar) Net Cash Annuity PV Factor PV Factor (1-10% Years Inflow (-10%, 0-10) 10) Present Value Years 1-10 Present value of annuity Year 10 Prosent value of residual value Total PV of cash flows Year Initial investment 12000000 Net present value of expansion Next Question - Data Table 122 skiers 141 days 10 years 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 Discount rate $ 245 75 12,000,000 10% 1 Print Done - . More Info Assume that White Valley uses the straight-line depreciation method and expects the lodge expansion to have a residual value of $500,000 at the end of its ten-year life. They have already calculated the average annual net cash inflow per year to be $2.924,340 Print Done as n m 1 Reference Next Question 6% Present Value of $1 Periods 1% 2% 3% 4% 5% 7% 8% 9% 10% 12% 14% 15% 16% 18% 20% Period 1 0.990 0.980 0.971 0.962 0.952 0.943 0.9350 926 0.917 0.909 0893 0.8770 870 0.862 0.847 0833 Period 2 0.9800.961 0.9430925 0.9070.190 0.873 0.857 0.8420 826 0.797 0.769 0.756 0.743 0.7180.694 Period 3 0.971 0.942 0.915 0.889 0.864 0.840 0.816 0.794 0772 0.751 0.712 0.6750658 0.641 0.609 0.579 Period 4 0.961 0.924 0.888 0.8550 823 0.792 0.763 0.735 0.708 0683 0.636 0.592 0.572 0.552 0.516 0.482 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 0.476 0437 0.402 Period 6 0.942 0.888 0.837 0 790 0.746 0.7050 886 0.6300 596 0.564 0.507 0.456 0.432 0.4100 3700335 Period 7 0.933 0 871 0.813 0.750 0.711 0.665 0.623 0.5830.5470513 0.452 0.400 0.376 0.3540.314 0.279 Period 8 0.923 0.853 0.789 0.731 0.677 0.627 0.582 0.540 0.502 0.467 0.4040.3510 327 0.305 0.268 0233 Period 9 0914 0.837 0.766 0.703 0 645 0.592 0.544 0 500 0460 0424 0 3610 308 0.284 0.2630 2250 194 Period 10 0.905 0.820 0.744 0.576 0.6140558 0.508 0.463 0.422 0.386 0.322 02700247 0.227 0.1910 162 Period 11 0.896 0.804 0.722 0.650 0.585 0.527 0.475 0.429 0.388 0.3500 287 0.237 0.215 0.195 0.162 0135 Period 12 0.887 0.788 0.701 0.625 0 557 0.497 0.444 0.397 0356 0.319 0.2570 208 0.187 0.168 0.137 0.112 Period 13 0.879 0.773 0.681 0.601 05300469 0.415 0.368 0326 0 2900 229 0.182 0.163 0.145 01116 0.093 Period 14 0.870 0.758 0.561 0.577 0.505 0.442 0.388 0 3400 2990 263 0 2050.160 0.141 0.125 0.099 0.078 Period 15 0.861 0743 05420556 0481 0417 0.352 0315 0 2750 239 0.183 0.140 0.123 0.1080.0840065 Print Done ra - X Reference Next Question Present Value of Ordinary Annuity of $1 Periods 1% 2% 3% 4% 5% 6% 7% 8% 9% 10% 12% 14% 15% 16% 18% 20% Period 1 0.990 0.980 0.971 0.962 0.952 0943 0935 0.926 0.917 0.909 0.893 0.877 0.870 0.862 0.847 0.833 Period 2 1970 1.942 1.913 1.885 1.859 1.833 1808 1783 1759 1736 1 690 1 647 1626 1.605 1 566 1.528 Period 3 2941 288428292775 2.723 2673 2624 25772531 2487 2402 2322 2283 2246 2 174 2106 Period 4 3.902 3.808 3.717 3.630 3.546 3.465 3.387 33123.240 3.1703.037 2.914 2855 2799 2.690 2 589 Period 5 48534.713 4.580 4452 432942124 100 3.9933.890 3.791 3.606 3.433 3.352 3274 3.127 2991 Period 6 5.795 5.601 5.417 5.242 5.0764,917 4787 4623 4486 4355 4.111 3.889 3.784 3.685 3.498 3326 Period 7 6.728 6.472 6230 6.0025.786 5582 53895 206 5,033 4868 4564 42884160 4.0393 812 3605 Period 8 7.652 7.325 7020 6.7336.463 8210 5.97157475.535 5.335 4 968 4.6394487 4344 4.078 3.837 Period 9 8.566 8.1627786 7.435 7 108 6.802 65 6 247 5.9955.7595 328 4.9464.7724.607 43034031 Period 10 9.471 8.933 8.530 8.111 7722736070246.710 6.418 6.14556505.216 5019 4833 44944192 Period 11 10.368 9.7879 2538.760 8.306 7.8877499 7.1306.805 6.495 5.930 5.453 5.2345,029 46564327 Period 12 11255 10 575 9.954 93858.86383847 943 75367.161 68146 194 5660 5421 5.1974.793 4.439 Period 13 12.134 11 348 10.6359.9869.3948 853 8.358 7 904 7487 7.1036424 5.8425.683 5.342 49104533 Period 14 13.004 12.105 11 290 10.563 9.899 9.295 8.745 8244778573676 628 6.002 572454885.0084611 Period 15 13.865 12.849 1193811118 10 3809712 9.1038,5598.06178056.911 6.142 58475.575 5092 4.675 TE 4 re Print Done eral