Please answer the requirements. Thanks

Consider how Golden Valley, a popular ski resort, could use capital budgeting to decide whether the $8.5 million Snow Park Lodge expansion would be a good investment. B. (Click the icon to view the expansion estimates.) 3 (Click the icon to view the present value factor table.) 3(Click the icon to view the present value annuity factor table.) (Click the icon to view the future value annuity factor table.) (Click the icon to view the future value factor table.) Read the requirements. Requirement 1. What is the project's NPV? Is the investment attractive? Why or why not? Calculate the net present value of the expansion. (Round your answer to the nearest whole dollar. Use parentheses or a minus sign for a negative net present value.) Net present value of expansion $ | Data Table Assume that Golden Valley's managers developed the following estimates concerning a planned expansion to its Snow Park Lodge (all numbers assumed): 120 Number of additional skiers per day......... Average number of days per year that weather conditions allow skiing at Golden Valley 161 Useful life of expansion (in years) Average cash spent by each skier per day .......... $ 244 Average variable cost of serving each skier per day .... $ Cost of expansion ..........$ 8,500,000 Discount rate . . . . . . . . . . . . . . . . . . . . . . .......... 12% Assume that Golden Valley uses the straight-line depreciation method and expects the lodge expansion to have a residual value of $900,000 at the end of its eight-year life. It has already calculated the average annual net cash inflow per year to be $1,970,640. 142 i Requirements 1. What is the project's NPV? Is the investment attractive? Why or why not? 2. Assume the expansion has no residual value. What is the project's NPV? Is the investment still attractive? Why or why not? 14% 0.877 1.647 2.322 2.914 3.433 16% 0.862 1.605 2.246 2.798 3.274 Present Value of Annuity of $1 Periods 1% 2% 3% 4% 5% 6% 8% 10% 12% 1 0.990 0.980 0.971 0.962 0.952 0.943 0.926 0.909 0.893 1.970 1.942 1.913 1.886 1.859 1.833 1.783 1.736 1.690 2.941 2.884 2.829 2.775 2.723 2.673 2.577 2.487 2.402 3.902 3.808 3.717 3.630 3.546 3.465 3.312 3.170 3.037 4.853 4.713 4.580 4.452 4.329 4.212 3.993 3.791 3.605 5.795 5.601 5.417 5.242 5.076 4.917 4.623 4.355 4.111 6.728 6.472 6.230 6.002 5.786 5.582 5.206 4.868 4.564 7.652 7.325 7.020 6.733 6.463 6.210 5.747 5.335 4.968 8.566 8.162 7.786 7.435 7.108 6.802 6.247 5.759 5.328 9.471 8.983 8.530 8.111 7.722 7.360 6.710 5.650 10.368 9.787 9.253 8.760 8.306 7.887 7.139 6.495 5.938 11.255 10.575 9.954 9.385 | 8.863 | 8.384 7.536 6.814 6.194 12.134 11.348 10.635 9.986 9.394 8.853 7.904 7.103 6.424 13.004 12.106 11.296 | 10.563 9.899 9.295 8.244 7.367 6.628 13.865 12.849 | 11.938 11.11810.380 9.712 8.559 7.606 6.811 18.046 16.351 14.877 13.590 12.462 11.470 9.818 8.514 7.469 22.023 19.523 17.413 | 15.622 14.094 12.783 10.675 9.077 7.843 25.808 22.396 | 19.600 17.292 15.372 13.765 11.258 9.4278.055 32.835 27.355 23.115 19.793 17.159 15.046 | 11.925 9.779 | 8.244 18% 0.847 1.566 2.174 2.690 3.127 3.498 3.812 4.078 4.303 4.494 20% 0.833 1.528 2.106 2.589 2.991 3.889 4.288 4.639 4.946 5.216 3.685 4.039 4.344 4.607 4.833 6.145 3.326 3.605 3.837 4.031 4.192 4.327 4.439 4.533 5.453 5.660 5.842 6.002 6.142 6.623 6.873 7.003 7.105 4.611 5.029 5.197 5.342 5.468 5.575 5.929 6.097 6.177 6.233 4.656 4.793 4.910 5.008 5.092 4.675 5.353 5.467 5.517 5.548 4.870 4.948 4.979 4.997 Future Value of Annuity of $1 Periods | | 20% 1.000 1% 12% 1.000 1.000 2.010 2.020 3.030 3.060 4.060 4.122 5.101 5.204 3% 1.000 2.030 3.091 4.184 5.309 6% 6% 1.000 2.060 3.184 4.375 5.637 8% 8% 1.000 2.080 3.246 4.506 5.867 10% 1.000 2.100 3.310 4.641 6.105 12% 1.000 2.120 3.374 4.779 6.353 14% 1.000 2.140 3.440 4.921 6.610 16% 1.000 2.160 3.506 5.066 6.877 18% 1.000 2.180 3.572 5.215 7.154 2.200 3.640 5.368 7.442 Mncovo on AwN- 6.152 7.214 8.286 9.369 10.462 6.308 7.434 8.583 9.755 10.950 6.468 7.662 8.892 10.159 11.464 4% 5% 1.000 1.000 2.040 2.050 3.122 3.153 4.246 4.310 5.416 5.526 6.633 6.802 7.898 8.142 9.214 9.549 10.583 11.027 12.006 12.578 13.486 14.207 15.026 15.917 16.627 17.713 18.292 19.599 20.024 21.579 29.778 33.066 41.646 47.727 56.085 66.439 95.026120.800 6.975 8.394 9.897 11.491 13.181 7.336 8.923 10.637 12.488 14.487 7.716 9.487 11.436 13.579 15.937 8.115 10.089 12.300 14.776 17.549 8.536 10.730 13.233 16.085 19.337 8.977 11.414 14.240 17.519 21.321 9.442 12.142 15.327 19.086 23.521 9.930 12.916 16.499 20.799 25.959 11.567 12.683 13.809 14.947 16.097 12.169 13.412 14.680 15.974 17.293 12.808 14.192 15.618 17.086 18.599 14.972 16.870 18.882 21.015 23.276 16.645 18.977 21.495 24.215 27.152 18.531 21.384 24.523 27.975 31.772 20.655 24.133 28.029 32.393 37.280 23.045 27.271 32.089 37.581 43.842 25.733 30.850 36.786 43.672 51.660 28.755 34.931 42.219 50.818 60.965 32.150 39.581 48.497 59.196 72.035 22.019 28.243 34.785 48.886 24.297 32.030 40.568 60.402 26.870 36.459 47.575 75.401 36.786 54.865 79.058 154.762 45.762 73.106 113.283 259.057 57.275 98.347 164.494 442.593 72.052 133.334 241.333 767.091 91.025 181.871 356.787 1,342.025 115.380 249.214 530.312 2,360.757 146.628 186.688 342.603 471.981 790.948 1,181.882 4,163.213 7,343.858 Present Value of $1 Periods | 1% 0.990 0.980 0.971 0.961 0.951 2% 0.980 0.961 0.942 0.924 0.906 3% 0.971 0.943 0.915 0.888 0.863 0.837 0.813 0.789 0.766 0.744 8% | 10% 0.926 0.909 0.8570.826 0.794 0.751 0.735 0.683 0.681 0.621 16% 0.862 0.743 0.641 0.552 0.476 18% 20% 0.847 0.833 0.7180.694 0.609 0.579 0.516 0.482 0.437 0.402 om = vo o Awn 0.942 0.933 0.923 0.914 0.905 0.888 0.871 0.853 0.837 0.820 4% 0.962 0.925 0.889 0.855 0.822 0.790 0.760 0.731 0.703 0.676 0.650 0.625 0.601 0.577 0.555 0.456 0.375 0.308 0.208 5% 6% 0.952 0.943 0.9070.890 0.864 0.840 0.823 0.792 0.784 0.747 0.746 0.705 0.711 0.665 0.677 0.627 0.645 0.592 0.614 0.558 0.585 0.527 0.557 0.497 0.530 0.469 0.505 0.442 0.417 0.377 0.312 0.295 0.233 | 0.231 0.174 0.142 0.097 0.410 0.354 0.305 0.263 0.227 0.370 0.314 0.266 0.225 0.191 12% 14% 0.893 0.877 0.797 0.769 0.712 0.675 0.636 0.592 0.567 0.519 0.507 0.456 0.452 0.400 0.404 0.351 0.361 0.308 0.322 0.270 0.287 0.237 0.257 0.208 0.229 0.182 0.205 0.160 0.183 0.140 0.104 0.073 0.059 0.038 0.033 0.020 0.0110.005 0.896 0.887 0.879 0.870 0.861 0.820 0.780 0.742 0.672 0.804 0.788 0.773 0.758 0.743 0.630 0.583 0.540 0.500 0.463 0.429 0.397 0.368 0.340 0.315 0.215 0.146 0.099 0.046 0.722 0.701 0.681 0.661 0.642 0.554 0.478 0.412 0.307 0.564 0.513 0.467 0.424 0.386 0.350 0.319 0.290 0.263 0.239 0.149 0.092 0.057 0.022 0.195 0.168 0.145 0.125 0.108 0.051 0.024 0.012 0.003 0.162 0.137 0.116 0.099 0.084 0.037 0.016 0.007 0.001 0.335 0.279 0.233 0.194 0.162 0.135 0.112 0.093 0.078 0.065 0.026 0.010 0.004 0.001 0.673 0.610 0.552 0.453 40 Future Value of $1 Periods 12% 2% 1.020 1.040 1.061 1.082 1.104 3% 1.030 1.061 1.093 1.126 1.159 4% 1.040 1.082 1.125 1.170 1.217 5% 1.050 1.103 1.158 1.216 1.276 6% 1.060 1.124 1.191 1.262 1.338 8% 1.080 1.166 1.260 1.360 1.469 10% 1.100 1.210 1.331 1.464 1.611 1.120 1.254 1.405 1.574 1.762 14% 1.140 1.300 1.482 1.689 1.925 16% 1.160 1.346 1.561 1.811 2.100 18% 1.180 1.392 1.643 1.939 2.288 20% 1.200 1.440 1.728 2.074 2.488 1% 1.010 1.020 1.030 1.041 1.051 1.062 1.072 1.083 1.094 1.105 1.116 1.127 1.138 1.149 1.161 1.126 1.149 1.172 1.195 1.219 1.194 1.230 1.267 1.305 1.344 1.265 1.316 1.369 1.423 1.480 1.340 1.407 1.477 1.551 1.629 1.419 1.504 1.594 1.689 1.791 1.587 1.714 1.851 1.999 2.159 1.772 1.949 2.144 2.358 2.594 1.974 2.211 2.476 2.773 3.106 2.195 2.502 2.853 3.252 3.707 2.436 2.826 3.278 3.803 4.411 2.700 3.185 3.759 4.435 5.234 2.986 3.583 4.300 5.160 6.192 1.243 1.268 1.294 1.319 1.346 1.384 1.426 1.469 1.513 1.558 1.539 1.601 1.665 1.732 1.801 1.710 1.796 1.886 1.980 2.079 1.898 2.012 2.133 2.261 2.397 2.332 2.518 2.720 2.937 3.172 2.853 3.138 3.452 3.797 4.177 3.479 3.896 4.363 4.887 5.474 4.226 4.818 5.492 6.261 7.138 5.117 5.936 6.886 7.988 9.266 6.176 7.288 8.599 10.147 11.974 7.430 8.916 10.699 12.839 15.407 1.220 1.282 1.348 1.489 1.486 1.641 1.811 2.208 1.806 2.094 2.427 3.262 2.191 2.666 3.243 4.801 2.653 3.386 4.322 7.040 3.207 4.292 5.743 10.286 4.661 6.848 10.063 21.725 6.727 10.835 17.449 45.259 9.646 17.000 29.960 13.743 26.462 50.950 188.884 19.461 40.874 85.850 378.721 | 27.393 62.669 143.371 750.378 38.338 95.396 237.376 1,469.772 93.051