Score: 0 of 10 pts 8 of 8 (6 complete) (Click the icon to view Pre SM9-12 (similar to) Assigned Media Consider how Smith Valley Stream Park Lodge could use capital budgeting to decide whether the $12,000,000 Stream Park Lodge expansion would be a good investment. Assume Smith Valley's managers developed the following estimates Cick the icon to view the estimates) (Cick the icon to view additional information concerning the expansion: (Click the icon to view Pre What is the project's NPV (rou Calculate the net present value of the expansion (Enter any factor amounts to three decimal places, X.XXX. Round to the nearest whole dollar) Years Years 1.8 Present value of annuity Net Cash Inflow Annuity PV Factor PV Factor (1-12%, (12%, n=8) n 8) Present Value Year 8 Prosent value of residual value 2.731 452 1,000000 Total PV of cash inflows Year 0 Initial investment Net present value of expansion 9 Homework A - Graded Save B of 8 16 completely HW Score: 70.59%, 60 of 85 pts Assigned Media Question Help Park Lodge could use a budgeting to decide whether the $12,000,000 Stream good investment Assume Smith Valey managers developed the following estimates (Cick the icon to view Present Value of $1 table) Click the conto Vw Proneel Vood of Ordinary Annuity of $1 table) What is the projects NPV (round to nearest oltar? is the investment attractive? Why why not? mates) information) Net Cash the expansion. Center any factor amount to the decimal places, xxxx Hound to the nearest whole dou) Annuity PV Factor PV Factor (12% 0-12%, 12 Present Value 2,731 452 1,000000 Inbow annuity residual value now of expansion i Data Table - X Number of additional skiers per day 116 skiers 141 days Average number of days per year that weather conditions allow skiing at Smith Valley Useful life of expansion (in years) 8 years Average cash spent by each skier per day $ 245 Average variable cost of serving each skier per day 78 Cost of expansion 12,000,000 Discount rate 12% Print Done . i More Info Assume that Smith Valley uses the straight-line depreciation method and expects the lodge expansion to have a residual value of $1,000,000 at the end of its eight-year life. They have already calculated the average annual net cash inflow per year to be $2,731,452. Print Done - Reference Present Value of $1 Periods 1% 2% 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 0.980 0.961 0.943 0.925 0.907 0.890 0.873 0.857 0.842 0.826 0.797 0.769 0.756 0.743 0.718 0.694 Period 3 0.971 0.942 0.915 0.889 0.864 0.840 0.816 0.794 0.772 0.751 0.712 0.675 0.658 0.641 0.609 0.579 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 0.666 0.630 0.596 0.564 0.507 0.456 0.432 0.410 0.370 0.335 Period 7 0.933 0.871 0.813 0.760 0.711 0.665 0.623 0.583 0.547 0.513 0.452 0.400 0.376 0.354 0.314 0.279 Period 8 0.923 0.853 0.789 0.731 0.677 0.627 0.582 0.540 0.502 0.467 0.4040.351 0.327 0.305 0.266 0.233 Period 9 0.914 0.837 0.766 0.703 0.6450.592 0.544 0.500 0.460 0.424 0.361 0.308 0.284 0.263 0.225 0.194 Period 10 0.905 0.820 0.744 0.676 0.614 0.558 0.508 0.463 0.422 0.386 0.322 0.270 0.247 0.227 0.191 0.162 Period 11 0.896 0.804 0.722 0.650 0.585 0.527 0416 0.429 0.388 0.350 0.287 0.237 0.215 0.195 0.162 0.135 Period 12 0.887 0.788 0.701 0.625 0.557 0.497 0.444 0.397 0.356 0.319 0.257 0.208 0.187 0.168 0.137 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 0.728 0.623 0.534 0.458 0.394 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 0.277 0.232 0.194 0.164 0.116 0.083 0.070 0.060 0.043 0.031 Period 20 0.820 0.673 0.5540.456 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 0.680 0.538 0.439 0.359 0294 0.242 0.199 0.1640.135 0.093 0,064 0.053 0.044 0.031 0.022 Period 22 0.803 0.647 0.522 0.422 0.3420278 0.226 0.1840.150 0.123 0.083 0.056 0.046 0.038 0.026 0.018 Period 23 0.795 0.634 0.507 0.406 0.3260.262 0.211 0.1700.138 0.112 0.074 0.049 0.040 0.033 0.022 0.015 Print Done Reference Present Value of Ordinary Annuity of $1 Periods 1% 2% 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 | 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 1,566 1.528 Period 3 2.941 2.884 2.829 2.775 2.723 2.673 2.624 2.577 2.531 2487 2.402 2.322 2283 2246 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 4.452 4.329 4.212 4.100 3.993 3.890 3.791 3.605 3.433 3.352 3.274 3.127 2.991 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 3.498 3.326 Period 7 6.728 6.472 6.230 6.002 5.786 5.582 5.389 5.206 5033 4968 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 4.639 4.487 4.344 4.078 3.837 Period 9 8,566 8.162 7.786 7.435 7.108 6.802 6,515 6.247 5.995 5.759 5.328 4.946 4.772 4.607 4.303 4.031 Period 10 9.471 8.983 8.530 8.111 7722 7360 7.024 6.710 6.418 6.145 5650 5216 5,019 4833 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 5,029 4.656 4327 Period 12 11.255 10.575 9.954 9.385 8.863 8.384 7.9437.536 7.1616.814 6.194 5.660 5421 5.1974.793 4.439 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 73676.628 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 8.061 7.606 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 9447 8.851 8.313 7.824 6.9746.265 5.954 5.669 5.162 4.730 Period 17 15.562 14.292 13.166 12.166 11.274 10.477 9.763 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 10.059 9.372 8.756 8.201 7.250 6.467 6.128 5.818 5.273 4.812 Period 19 17.226 15.678 14.324 13.134 12.085 11.158 10.336 9.604 8.950 8.365 7.366 6.550 6.198 5.877 5,316 4,844 Period 20 18.046 16.351 14.877 13.590 12.462 11.470 10.594 9.818 9.129 8.514 7.469 6.623 6.259 5.929 5.353 4.870 Period 21 18.857 17.011 15.415 14.029 12.821 11.764 10,836 10.017 9.292 8.649 7.562 6.687 6.312 5.973 5.384 4.891 Period 22 19.660 17.658 15.937 14.451 13.163 12.042 11.061 10.201 9.442 8.772 7.645 6.743 6.359 6.011 5.410 4.909 Period 23 20.456 18.292 16.444 14.857 13.489 12.303 11272 10.371 9.5808.883 7.718 6.792 6.399 6.044 5432 4.925 Print Done