S26-12 (similar to) Question Help (Click the icon to view Present Value of $1 table.) (Click the icon to view Present Value of Ordinary Annuity of $1 table.) Consider how Rouse Valley Brook Park Lodge could use capital budgeting to decide whether the $11,500,000 Brook Park Lodge expansion would be a good investment. Assume Rouse Valley's managers developed the following estimates concerning the expansion: (Click the icon to view the estimates.) (Click the icon to view additional information.) 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.) Net Cash Annuity PV Factor PV Factor (i=10%, Years Inflow (i=10%, n=10) n=10) Present Value Years 1 - 10 Present value of annuity Year 10 Present value of residual value Total PV of cash inflows Year 0 Initial investment Net present value of expansion S26-12 (similar to) Ques Consider how Rouse Valley Brook Park Lodge could use capital budgeting to decide whether the $11,500,000 Brook Park Lodge expansion would be a good investment. Assume Rouse Valley's manag developed the following estimates concerning the expansion: (Click the icon to view the estimates.) 1 Data Table (Click the icon to view additional information.) i More Info 118 skiers CI aces, X. 144 days ktor (i=1 h=10) 10 years Number of additional skiers per day Average number of days per year that weather conditions allow skiing at Rouse 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 $ Assume that Rouse 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 ten-year life. They have already calculated the average annual net cash inflow per year to be $2,701,728. 235 76 11,500,000 10% Discount rate Print Done Print Done Cotar number in the adit field and then click back Acar S26-12 (similar to) 1 Reference Present Value of $1 8% 0.926 0.857 0.794 0.735 0.681 9% 10% 12% 14% 15% 16% 18% 0.917 0.909 | 0.893 0.877 0.870 0.862 0.847 0.8420.826 0.797 0.769 0.756 0.743 0.718 0.772 0.751 0.712 0.675 0.658 0.641 0.609 0.708 0.683 0.636 0.592 0.572 0.552 0516 0.650 0.621 0.567 0.519 0.497 0.476 0.437 20% 0.833 0.694 0.579 0.482 0.402 0.630 0.596 0.564 0.507 0.456 0.583 0.547 0.513 0.452 0.400 0.540 0.502 0.467 0.4040.351 0.500 0.460 0.424 0.361 0.308 0.463 0.422 0.386 0.322 0.270 0.432 0.410 0.370 0.376 0.354 0.314 0.327 0.305 0.266 0.284 0.263 0.225 0.247 0.227 0.191 0.335 0.279 0.233 0.194 0.162 0.429 0.397 0.368 0.340 0.315 0.388 0.350 0.287 0.237 0.356 0.319 0.257 0.208 0.326 0.290 0.229 0.182 0.299 0.263 0.205 0.160 0.275 0.239 0.183 0.140 0.215 0.195 0.162 0.187 0.168 0.137 0.163 0.145 0.116 0.141 0.125 0.099 0.123 0.108 0.084 0.135 0.112 0.093 0.078 0.065 Periods 1% 2% 3% 4% 5% 6% 7% Period 1 0.990 0.980 0.971 0.962 0.952 0.943 0.935 Period 2 0.980 0.961 0.943 0.925 0.907 0.890 0.873 Period 3 0.971 0.942 0.915 0.889 0.864 0.840 0.816 Period 4 0.961 0.924 0.888 0.855 0.823 0.792 0.763 Period 5 0.951 0.906 0.863 0.822 0.784 0.747 0.713 Period 6 0.942 0.888 0.837 0.790 0.746 0.705 0.666 Period 7 0.933 0.871 0.813 0.760 0.711 0.665 0.623 Period 8 0.923 0.853 0.789 0.731 0.677 0.627 0.582 Period 9 0.914 0.837 0.766 0.703 0.645 0.592 0.544 Period 10 0.905 0.820 0.744 0.676 0.614 0.558 0.508 Period 11 0.896 0.804 0.722 0.650 0.585 0.527 0.475 Period 12 0.887 0.788 0.701 0.625 0.557 0.497 0.444 Period 13 0.879 0.773 0.681 0.601 0.530 0.469 0.415 Period 14 0.870 0.758 0.661 0.577 0.505 0.442 0.388 Period 15 0.861 0.743 0.642 0.555 0.481 0.417 0.362 Period 16 0.853 0.728 0.623 0.534 0.458 0.394 0.339 Period 17 0.844 0.714 0.605 0.513 0.436 0.371 0.317 Period 18 0.836 0.700 0.587 0.494 0.416 0.350 0.296 Period 19 0.828 0.686 0.570 0.475 0.396 0.331 0.277 Period 20 0.820 0.673 0.554 0.456 0.377 0.312 0.258 Period 21 0.811 0.660 0.538 0.439 0.359 0.294 0.242 Period 22 0.803 0.647 0.522 0.422 0.342 0.278 0.226 Period 23 0.795 0.634 0.507 0.406 0.326 0.262 0.211 Period 24 0.788 0.622 0.492 0.390 0.310 0.247 0.197 Period 25 0.780 0.610 0.478 0.375 0.295 0.233 0.184 Period 26 0.772 0.598 0.464 0.361 0.281 0.220 0.172 Period 27 0.764 0.586 0.450 0.347 0.268 0.207 0.161 Period 28 0.757 0.574 0.437 0.333 0.255 0.1960.150 Period 29 0.7490.563 0.424 0.321 0.243 0.185 0.141 Period 30 0.742 0.552 0.412 0.308 0.231 0.174 0.131 Period 40 0.672 0.453 0.307 0.208 0.142 0.097 0.067 Period 50 0.608 0.372 0.228 0.141 0.087 0.054 0.034 0.292 0.252 0.218 0.163 0.123 0.270 0.231 0.198 0.146 0.108 0.250 0.212 0.180 0.130 0.095 0.232 0.1940.164 0.116 0.083 0.215 0.178 0.149 0.104 0.073 0.054 0.045 0.038 0.031 0.026 0.107 0.093 0.071 0.093 0.080 | 0.060 0.081 0.069 0.051 0.070 | 0.060 0.043 0.061 0.051 0.037 0.053 0.044 0.031 0.046 0.038 0.026 0.040 0.033 0.022 0.035 0.028 0.019 0.030 0.024 0.016 0.199 0.1640.135 0.093 0.064 0.184 0.150 0.123 0.083 0.056 0.170 0.138 0.112 0.074 0.049 0.158 0.126 0.1020.066 0.043 0.146 0.116 0.092 0.059 0.038 0.022 0.018 0.015 0.013 0.010 0.135 0.125 0.116 0.107 0.106 0.084 0.053 0.033 0.026 0.021 0.014 0.098 0.076 0.047 0.029 0.023 0.0180.011 0.090 0.069 | 0.042 0.026 0.0200.0160.010 0.0820.063 0.037 0.022 0.017 0.014 0.008 0.075 0.057 0.033 0.020 0.015 0.0120.007 0.009 0.007 0.006 0.005 0.004 0.099 0.046 0.032 0.022 0.011 0.005 0.004 0.003 0.001 0.001 0.021 0.013 0.009 0.003 0.001 0.001 0.001 S26-12 (similar to) 1 Reference 18% 20% 0.847 0.833 1.566 1.528 2.174 2.106 2.690 2.589 3.127 2.991 3.498 3.326 3.812 3.605 4.078 3.837 4.303 4.031 4.494 4.192 4.656 4.327 4.793 4.439 4.910 4.533 5.0084.611 5.092 4.675 Present Value of Ordinary Annuity of $1 Periods 1% 2% 3% 4% 5% 6% 7% 8% 9% 10% 12% 14% 15% 16% 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 Period 2 1.970 1.942 1.913 1.886 1.859 1.833 1.808 1.783 1.759 1.736 1.690 1.647 1.626 1.605 Period 3 2.941 2.884 2.829 2.775 2.723 2.673 2.624 2.577 2.531 2.487 2.402 2.322 2.283 2.246 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 Period 5 4.853 4.713 4.580 4.452 4.329 4.212 4.100 3.993 3.890 3.791 3.605 3.433 3.352 3.274 Period 6 5.795 5.601 5.417 5.242 5.076 4.917 4.767 4.623 4.486 4.355 4.111 3.889 3.784 3.685 Period 7 6.728 6.472 6.230 6.002 5.786 5.582 5.389 5.206 5.033 4.868 4.564 4.288 4160 4.039 Period 8 7.652 7.325 7.020 6.733 6.463 6.210 5.971 5.747 5.535 5.335 49684.639 4.487 4.344 Period 9 8.5668.162 7.786 7.435 7.108 6.802 6.515 6.247 5.995 5.759 5.328 4.946 4.772 4.607 Period 10 9.471 8.983 8.530 8.111 7.722 7.360 7.024 6.710 6.418 6.145 5.6505.216 5.019 4.833 Period 11 10.368 9.787 9.253 8.760 8.306 7.887 7.499 7.139 6.805 6.495 5.938 5.453 5.234 5.029 Period 12 11.255 10.575 9.954 9.3858.863 8.384 7.943 7.536 7.1616.814 6.194 5.660 5.421 5.197 Period 13 12.134 11.348 10.635 9.986 9.394 8.853 8.358 7.904 7.487 7.103 6.424 5.8425.583 5.342 Period 14 13.004 12.106 11.296 10.5639.899 9.295 8.745 8.244 7.786 7.367 6.628 6.002 5.724 5.468 Period 15 13.865 12.849 11.938 11.118 10.380 9.712 9.108 8.559 8.061 7.606 6.811 6.142 5.847 5.575 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 Period 17 15.562 14.292 13.166 12.166 11 274 10.4771 9.763 9.122 8.544 8.022 7.1206.373 6.047 5.749 Period 18 16.398 14.992 13.754 12.659 11.690 10.828 10.059 9.372 8.756 8.201 7.250 6.467 6.128 5.818 Period 19 17.226 15.678 14.324 | 13.134 12.085 11.158 10.336 9.604 8.950 | 8.365 7.3666.550 6.198 5.877 Period 20 18.046 16.351 14.877 13.590 12.462 11.470 10.594 9.818 9.129 8.5147.469 6.623 6.259 5.929 Period 21 18.857 | 17.01115.415 14.029 12.821 11.764 10.836 10.017 9.292 8.649 7.5626.687 6.312 5.973 Period 22 19.660 17.658 15.937 14.451 13.163 12.042 11.061 10.2019.442 8.772 7.645 6.743 6.359 6.011 Period 23 20.456 18.292 16.444 14.857 13.489 12.303 11.272 10.371 9.580 8.883 7.718 6.792 6.399 6.044 Period 24 21.243 18.914 16.936 15.247 13.799 12.550 11.469 10.529 9.707 8.985 7.784 6.835 6.434 6.073 Period 25 22.023 19.523 17.413 15.622 14.094 12.783 11.654 10.675 9.8239.077 7.8436.873 6.464 6.097 Period 26 22.795 20.121 | 17.877 15.983 14.375 13.003 11.826 10.8109.929 9.161 7.896 6.906 6.491 6.118 Period 27 23.560 20.707 18.327 | 16.330 14.643 13.211 11.987 10.935 10.027] 9.237 7.943 6.935 6.514 6.136 Period 28 24.316 21.28118.764 16.663 14.898 13.406 12.137 11.051 10.116 9.307 7.984 6.961 6.534 6.152 Period 29 25.066 21.844 19.188 16.984 15.141 13.591 12.278 11.158 10.198 9.370 8.0226.983 6.551 6.166 Period 30 25.808 22.396 19.600 17.292 15.372 13.765 12.40911 258 10.274 9.427 8.055 7.003 6.566 6.177 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 Period 50 39.19031.42425.730 | 21.482 18.25615.762 13.801 12.233 10.962 9.915 8.304 7.133 6.661 6.246 5.1624.730 5.222 4.775 5.273 4.812 5.316 4.844 5.353 4.870 5.384 4.891 5.410 4.909 5.432 4.925 5.451 4.937 5.467 4.948 5.480 4.956 5.492 4.964 5.502 4.970 5.510 4.975 5.517 4.979 5.548 4.997 5.5544.999