Question 3 * Question 4 the expansion: | (Click the icon to view the estimates.) i (Click the icon to view additional information.) Question 5 Media 3 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 any factor amounts to three decimal places, X.XXX. Round to the nearest whole dollar.) Annuity PV Factor PV Factor (i=8%, (i=8%, n=11) n=11) Years Net Cash Inflow Present Value Years 1 - 11 Present value of annuity Year 11 Present value of residual value Total PV of cash inflows Question 6 Year 0 Initial investment Question 7 More info Net present value of expansion Assume that Juda 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 eleven-year life. They have already calculated the average annual net cash inflow per year to be $2,791,360. Print Done Data table - Number of additional skiers per day 122 skiers Average number of days per year that weather conditions 143 days allow skiing at Juda Valley Useful life of expansion (in years) 11 years Average cash spent by each skier per day $ Average variable cost of serving each skier per day 246 86 Cost of expansion 11,500,000 Check answer Discount rate 8% Print Done