Question Help Consider how Jones Valley Waterfall Park Lodge could use capital budgeting to decide whether the(Click the icon to view Present Value of $1 table.) $12,500,000 Waterfall Park Lodge expansion would be a good investment. Assume Jones Valley's managers developed the following estimates conceming the expansion: ll (Click the icon to view the estimates.) (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? (Click the icon to view additional information.) Calculate the net present value of the expansion. (Enter the factor to three decimal places, X.xxX. Round your calculations to the nearest whole dollar.) Net Cash Annuity PV Factor PV Factor Present Data Table Years 1-10 0 Inflow (i-12%, n.10) (i-12%, n-10) Valuc 2657560 Present value of annuity 12500000 Initial investment Number of additional skiers per day Average number of days per year that weather conditions 116 skiens Net present value of expansion 145 days 10 years 246 allow skiing at Jones 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 When the residual value is zero, the expansion is an attractive project because its NPV is positive More Info 12,500,000 12% Assume that Jones Valley uses the straight-line depreciation method and expects the lodge expansion to have no residual value at the end of its ten-year life. The project's average annual net cash inflow per year is expected to be $2,657,560 PrintDone