Requirnment $2$ please!

Consider how Frost Valley, a popular ski resort, could use capital budgeting to decide whether the $$10$ million Waterfall Park Lodge expansion would be a good investment.

$($Click the icon to view the expansion estimates.$)$

$($Click the icon to view the present value annuity factor table.$)$

$($Click the icon to view the present value 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 nes

Net present value of expansion $$

Is the investment attractive? Why?

The expansion is $$ project because its NPV is positive

Requirement $2.$ Assume the expansion has no residual value. What is the project's NPV$?$ Is the investment still attractive? Why or why not?

Calculate the project's NPV$.($Round your answer to the nearest whole dollar. Use parentheses or a minus sign for a negative net present vall

Net present value of expansion $$

Data table

Assume that Frost Valley's managers developed the following estimates concerning a planned expansion to its Waterfall Park Lodge $($all numbers assumed$)$:

Number of additional skiers per day $................125$

Average number of days per year that weather

conditions allow skiing at Frost Valley $...q,$

Useful life of expansion $($in years$)....q,$

Average cash spent by each skier per day. $q,$ $

Average variable cost of serving each skier per day $.$ $ $$,132$

Cost of expansion. $q,$ $$10,000,000$

Discount rate $..q,12\%$

Assume that Frost Valley uses the straight$-$line depreciation method and expects the lodge expansion to have a residual value of $$800,000$ at the end of its ten$-$year life. It has already calculated the average annual net cash inflow per year to be $$2,275,500.$