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Consider how Hunter Valley Snow Park Lodge could use capital budgeting to decide whether the $11,000,000 Snow Park Lodge expansion would be a good investment. Assume Hunter 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 NPV (round to nearest dollar)? is the investment attractive? Why or why not? Inflow Calculate the net present value of the expansion (Enter any factor amounts to three decimal places, X.XXX. Round to the nearest whole dollar) Net Cash Annuity PV Factor PV Factor (-10% Years (110%, n=7) ) Present Value Years 1-7 Present value of annulty Year 7 Present value of residual value Total PV of cash inflows Year o Initial Investment Net present value of expansion Enter any number in the edit fields and then click Check Answer. Consider how Hunter Valley Snow Park Lodge could use a budgeting to decide whether the $11,000,000 Snow Park Lodge expansion would be a good investment. Assume Hunter Valley managers developed the following estimates concoming the expansion (Click the loon to view the estimates) Click the contes View additional information) Click the loon to view Present Value of $1 table) Click the icon to view Present Value of Ordinary Annuity of 51 table) What is the projecte NPV (round to nearest dollary? Is the investment attractive? Why or why not? Data Table 12 skins 142 days Number of additional skiers per day Average number of days per year that weather conditions allow skiing at Hunter Valley Useful life of expansion (in years) Average cash spent by each skler per day Average variable cost of serving each skler per day Cost of expansion Discount rate More Info 83 11,000,000 10% Assume that Hunter Valley uses the straight line depreciation method and expects the lodge expansion to have a residual value of $600,000 at the end of its seven your life. They have already calculated the average annual net cash flow per year to be 52.714,750 Print Done Print Done Enter any number in the edit fields and then click Check Answer Help Me Solve This e Text Pages Get More Help Clear All Check Answer k: Chanter 11 Dead Ninetan 7 Reference unter Ve ow Park oped the on to vie an to vie 20% active? WH presor Present Value of $1 Periods 2% 3% 4% 5% 6% 7% 8% 9% 10% 12% 14% 15% 16% 18% Period 1 0.990 0.980 0.971 0.962 0.952 0.943 0.935 0.926 0.917 0.909 0.893 0877 0.870 0.862 0.847 0.833 Period 2 0.980 0961 0.943 0.925 0.907 0.890 0.873 0857 0.8420826 0.797 0.769 0.756 0.7430.7180694 Period 3 0.971 0.942 0.915 0.889 0.8840.840 0.816 0.794 0.772 0.751 0.712 0.675 0.658 0.641 0.6090.579 Period 4 0.961 0.924 0.888 0.855 0.823 0.792 0.763 0.735 0.708 0.683 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 0.437 0.402 Period 6 0.942 0.888 0.837 0.790 0.746 0.705 0.6660.630 0.596 0.564 0.507 0456 0.432 0.410 0.370 0.335 Period 7 0.933 0.871 0.813 0.750 0.7110.665 0.623 0.58305470513 0.452 0.400 0.375 0.354 0.3140.279 Period 8 0.923 9853 0.789 0.731 0.677 0627 0.582 0.540 0.502 0.467 0.4040.351 0.327 0.305 0.266 0233 Period 9 0.914 837 0.766 0.703 0.6450.592 0.544 0.500 0.400 0.424 0.361 0.308 0.284 0.263 0225 0.194 Period 10 0.905 0.820 0.7440.676 0.61405580 508 0463 0.422 0.386 0.322 0.270 0.2470 227 0.1910.162 Period 11 0.896 0.8040.722 0650 0.585 0.527 0.475 0.429 0.388 0.350 0.287 0237 0.215 0.195 0.162 0.135 Period 120.887 0.788 0.701 0.025 0.557 0497 0.444 0.397 0.356 0.319 0257 0.208 0.187 0.1680.137 0.112 Period 13 0.879 0.773 0.681 0.601 0.530 04090.415 0.368 0.326 0.2900229 0.182 0.163 0.145 0.116 0.090 Period 14 0.870 0.758 0.661 0.577 0.5050442 0.388 0.340 0.299 0.263 0.205 0.160 0.141 0.125 0.09 0.078 Period 15 0.861 0.7430.542 0.565 0.481 0.417 0.362 0.315 0.275 0.239 0.183 0.140 0.123 0.108 0.0840065 Period 16 0.853 0.7280.623 0534 0.4580394 0.3390292 0.252 0.218 0.163 0.123 0.107 0.093 0.071 0.054 Period 17 0.844 0.714 0.605 05130436 0.371 0.317 0.270 0231 0.198 0.146 0.108 0.093 0.080 0.0600045 Period 18 0.836 0.700 0.587 0.494 0.416 0.350 0.250 0.250 0212 0.180.130 0.095 0.081 0.069 0.051 0.038 Period 19 0.828 0.686 0.5700475 0.3960331 0.277 0.232 0.1940.164 0.116 0.083 0.070 0.060 0.0430031 Period 20 0.820 0.673 0.554 0.456 0.377 0.3120.258 0.215 0.178 0.149 0.1040.073 0.061 0.051 0.037 0.026 Darind 21 LO 1.400 20 242 100 Anton Mall osent sent tal PV tial in t pres in the Print Done ve This HTRI PROAS TATTUR Reference Period 11 0.896 0.804 0.722 0.650 0.585 0.527 0.475 0.429 0.388 0.350 0.287 0.2370 215 0.195 0.162 0.135 Period 12 0.887 0.788 0.701 0.625 0.557 0.4970.444 0.397 0.356 0.319 | 0.257 0.208 0.187 0.1680.137 0.112 Period 13 0.879 0.773 0.681 0.601 0.530 0.469 0.415 0.368 0.326 0.290 0.229 0.182 0.163 0.145 0.116 0.093 Period 14 0.870 0.758 0.661 0.577 0.505 0.442 0.388 0.340 0.299 0.263 0.205 0.160 0.141 0.125 0.099 0.078 Period 15 0.861 0.743 0.642 0.555 0.481 0.417 0.362 0.315 0.275 0.239 0.183 0.140 0.123 0.108 0.084 0.065 Period 16 0.853 0.7280.623 0.534 0.4580.394 0.339 0.292 0.252 0.218 0.163 0.123 0.107 0.093 0.071 0.054 Period 17 0.844 0.714 0.605 0.513 0.436 0.371 0.317 0.270 0.231 0.198 0.146 0.108 0.093 0.080 0.060 0.045 Period 18 0.836 0.700 0.587 0.494 0.416 0.350 0.296 0.250 0.212 0.180 0.130 0.095 0.081 0.069 0.051 0.038 Period 19 0.828 0.686 0.570 0.475 0.396 0.331 0277 0.232 0.194 0.164 0.116 0.083 0.070 0.060 0.043 0.031 Period 20 0.820 0.673 0.554 0.456 0.377 0.312 0.258 0.215 0.178 0.149 0.104 0.073 0.061 0.051 0.037 0.026 Period 21 0.811 0.660 0.538 0.439 0.359 0.294 0.242 0.199 0.164 0.135 0.093 0.064 0.053 0.044 0.031 0.022 Piriod 22 0.803 0.647 0.522 0.422 0.342 0.278 0.226 0.184 0.150 0.123 0.083 0.056 0.046 0.038 0.025 0.018 Period 23 0.795 0.6340.507 0.406 0.326 0.262 0.211 0.170 0.138 0.112 0.074 0.049 0.040 0.033 0.022 0.015 Period 24 0.788 0.622 0.492 0.390 0.310 0.247 0.197 0.158 0.126 0.102 0.066 0.043 0.035 0.028 0.019 0.013 Period 25 0.780 0.610 0.478 0.375 0.295 0.233 0.184 0.146 0.116 0.092 0.0590.038 0.030 0.024 0.0160.010 Period 26 0.772 0.598 0.464 0.361 0.281 0.220 0.172 0.135 0.106 0.084 0.053 0.033 0.026 0.021 0.014 0.009 Period 27 0.764 0.586 0.450 0.347 0.268 0.207 0.161 0.125 0.098 0.076 0.047 0.029 0,023 0.018 0.0110.007 Period 28 0.757 0.574 0.437 0.333 0.255 0.1960.150 0.116 0.090 0.069 0.042 0.026 0.020 0.0160.010 0.006 Period 29 0.749 0.563 0.424 0.321 0.243 0.185 0.141 0.107 0.082 0.063 0.037 0.022 0.017 0.014 0.008 0.005 Period 30 0.742 0.5520412 0.308 0.231 0.174 0.131 0.099 0.075 0.057 0.033 0.020 0,015 0,012 0.007 0.004 Period 40 0.672 0.453 0.307 0.208 0.142 0.097 0.067 0.046 0.032 0.022 0.011 0.005 0.0040.003 0.001 0.001 Period 50 0.608 0.372 0.228 0.141 0.087 0.054 0.034 0.021 0.013 0.009 0.003 0.001 0.001 0.001 Print Done CARLA adus Reference 2% Present Value of Ordinary Annuity of $1 Periods 1% 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 0.943 0.935 0.926 0.917 0.909 0.893 0.877 0.870 0.862 0.847 0.833 Period 2 1.970 1942 1.913 1.886 1.859 1.833 1.808 1.783 1.759 1.736 1.690 1.647 1.625 1.605 1.566 1.528 Period 3 2.9412.884 2.829 2.775 2.723 2.673 2.624 2.577 2.531 2.487 2402 2.322 2283 2.246 2.174 2.106 Period 4 3.902 3.808 3.717 3.630 3.546 3.465 3.387 3.312 3.240 3.170 3.037 2.914 2.855 2.798 2.690 2.589 Period 5 4.853 4.713 4.580 4452 4.329 4212 4.100 3.993 3.890 3.791 3.605 3.433 3.352 3.274 3.127 2.991 Perlod 6 5.795 5.601 5.417 5.242 5.076 4.917 4.767 4.623 44864.355 4.111 3.889 3.7843.685 3.498 3.326 Period 7 6.728 6472 6.230 6.002 5.786 5.582 5.389 5.206 5.033 4.868 4.564 4288 4160 4.039 3.812 3.605 Period 8 7.652 7.325 7,020 6.733 6.463 6.210 5.971 5.747 5.535 5.335 4.968 4.6394.487 4.344 4.078 3,837 Period 9 8,566 8.1627.786 7435 7.108 6.802 6.515 6.247 5.995 5.759 5.328 4.946 4.7724.607 4 303 4,031 Period 10 9.47 8.983 | 8.530 8.111 7.722 7.360 7.024 6710 6.418 6.145 5.6505.216 5.019 4.833 4.494 4.192 Period 11 10.368 9.787 9.253 8.760 8.30678877499 7.139 6.805 6.495 5.938 5.453 5234 5.0294656 4.327 Period 12 11.255 10.575 9.954 9.385 8.863 8.384 79437.5367.161 6.8146.1945.660 5.421 5.1974.793 4.439 Period 13 12.134 11.348 10.635 9.986 9.394 8.853 8.358 7.904 7487 7.103 6.424 5.8425,583 5.342 4.910 4533 Perlod 14 13.004 12.106 11.296 10.5639.899 9.295 8.745 8.244 7.7867.367 6.6286.0025.724 5.468 5.008 4.611 Period 15 13.865 12.849 11.938 11.118 10.380 9.712 9.108 8.559 8.061 7.606 6.811 6.1425.847 5.575 5,092 4.675 Period 16 14.718 13.578 12.561 11.652 10.838 10.106 9.4478.851 8.313 7.8246.9746.265 5.954 5.669 5.1624.730 Period 17 15,562 14 292 13.166 12.166 1127410.4771 9.763 9.12285448.022 7.1206.373 6.047 5.749 5.222 4.775 Period 18 16.398 14,992 13.754 12.659 11.690 10.828 10.0599.372 8.756 8.2017.250 6.467 6.128 5.818 5.2734.812 Period 19 17.226 15,678 14 324 13.134 12.085 11.158 10.336 9.604 8.950 8.3657.366 6.5506.198 5.87753164.844 Period 20 18.046 16.351 14.877 13590 12.462 11.470 10.5949.818 9.129 8.5147.469 6.623 6.250 5.929 5.363 4,870 Darind 21 TRAZ 117 011 115 115 | 14020 119 R21.111 764 In A 10 17 10 2021 RO 7562 R16 312 5072 ARQ S24 Print Done Period 11 10.368 9.787 9.253 8.760 8.306 7887 7.499 7.139 6,805 6.495 5.938 5.453 5234 5.029 4.656 4.327 Period 12 11.255 10.575 9.954 9.385 8.863 8.384 7.9437.5367.161 6.8146.194 5.660 5.421 5.197 4.793 4439 Period 13 12.134 11.348 10.635 9.986 9.394 8.853 8.358 7.904 7.487 7.103 6.424 5.842 5.583 5.342 4.910 4,533 Period 14 13.004 12.106 11 296 10.563 9.899 9.295 8.745 8.244 7.786 7.367 6.628 6.002 5.724 5.468 5.008 4.611 Period 15 13.865 12.849 11.938 11.118 10.380 9.712 9.108 8.559 8.0617.606 6.811 6.142 5.847 5.575 5.092 4.675 Period 16 14.718 13.578 12.561 11.652 10.838 10.106 9.447 8.851 8.313 7.824 6.974 6.265 5.954 5.669 5.1624.730 Period 17 15.562 14292 13.166 12.166 11.274 10.477 9763 9.122 8.544 8.022 7.120 6.373 6.047 5,749 5.222 4.775 Period 18 16.398 14.992 13.754 12.659 11.690 10.828 10.0599.372 8.7568.201 7.250 6.467 6.128 5.818 5.2734.812 Period 19 17.226 15.678 14.324 13.134 12.085 11.158 10.336 9.604 8.950 8.3657366 6.5506.198 5.877 5.316 4.844 Period 20 18.046 16,351 14.877 13,590 12.462 11.470 10.594 9.818 9.1298.5147.469 6.623 6.259 5.929 5.353 4.870 0.129 Period 21 18.857 17.011 15.415 14.029 12821 11.764 10.836 10.0179.292 8.6497.562 6.687 6.312 5.973 5.384 4.891 Period 22 19.660 17.658 15.93714.451 13.163 12.042 11.061 10.2019.4428.7727645 6.7436.3596.011 5.410 4.909 Period 23 20.456 18.292 16.44414857 13.489 12.303 11.272 10.371 9.5808.8837.718 6.7926.399 6.044 5.432 4.925 Period 24 21.24318.914 16.936 15 247 13.799 12.550 11.469 10.529 9.707 8.9857.784 6.83564 6.0735.451 4.937 Period 25 22.023 19.52317413 15.622 14.094 12.783 11.654 10.675 9.8239.077 7.843 6.873 6.464 6.097 5.467 4 948 Period 26 22.795 20.12117.877 15.983 14.375 13.003 11.826 10.8109.929 9.1617.8966.906 6491 6.118 5.480 4956 Period 27 23.560 20.707 18.327 16,330 14,643 13.211 11,987 10,935 10.027 9.237 7.943 6.9356.514 6.136 5.492 4964 Period 28 24 316 21.281 18.784 16.663 14.898 13.406 12.13711.051 10.116 9.307 7.984 6.9616.534 6.152 5.502 4.970 Period 29 25.066 21.844 19.188 16.984 15.141 13.591 12.278 11.158 10.1989.370 8.022 6.9836,551 6.166 5.510 4.975 Period 30 25,808 22.396 19.600 17.292 15.372 13.765 12.409 11.258 10.274 94278.0557.0036.566 6.177 5.517 4.979 Period 40 32.835 27.355 23.115 19.793 17.159 15.046) 13.332 11.925 10.757 9.779 8.244 7.105 6.642 6.233 5.548 4.997 Period 50 39.196 31.424 25.730 21.482 18.256 15.762 13.801 12 233 10.962 9.915 8.304 7.133 6.661 6.246 5554 4.999 Print Done
