Percentage of market share and rate of on $-$ time deliveries are indicators of the perspective.

A$.$ quality management

B$.$ customer

C$.$ internal business

D$.$ learning and growth

Consider how Root Valley Spring Park Lodge could use capital budgeting to decide whether the $$13,000,000$ Spring Park Lodge expansion would be a good investment. Assume Root 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 IRR? Is the investment attractive? Why or why not?

The internal rate of return $($IRR$)$ of the expansion is $$

The project is $$ since it will earn a $$ return than the company's $12\%$ hurdle rate.

More info

Assume that Root Valley uses the straight$-$line depreciation method and expects the lodge expansion to have no residual value at the end of its twelve$-$year life. The project is expected to have an average annual net cash inflow of $$2,632,830.$ The NPV of the expansion is expected to be $$3,307,749.$

Data table

$\backslash$table$[[$Number of additional skiers per day,$114$ skiers$],[$Average number of days per year that weather conditions,$149$ days$],[$allow skiing at Root Valley,$12$ years$],[$Useful life of expansion $($in years$),241],[$Average cash spent by each skier per day,$86],[$Average variable cost of serving each skier per day,$13,000,000$