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 negative net present value.) Net present value of expansion Is the investment attractive? Why? The expansion is project because its NPV is 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 value) Net present value of expansion Is the investment attractive? Why? Without a residual value the expansion because of the project's NPV Consider how Golden Valley, a popular ski resort, could use capital budgeting to decide whether the $8.5 milion Stream 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 negative net present value) Net present value of expansion ework (required) 8 of 10 (10 complete) - X Data Table Assume that Golden Valley's managers developed the following estimates concerning a planned expansion to its Stream Park Lodge (all numbers assumed): 164 . . 120 Number of additional skiers per day ..... Average number of days per year that weather conditions allow skiing at Golden Valley 10 Useful life of expansion (in years) Average cash spent by each skier per day...... $ 238 Average variable cost of serving each skier per day . $ 146 Cost of expansion.. $ 8,500,000 Discount rate 14% Assume that Golden Valley uses the straight-line depreciation method and expects the lodge expansion to have a residual value of $900,000 at the end of its ten-year life. It has already calculated the average annual net cash inflow per year to be $1.810 560 Print Done Clear All a Reference O Reference -X SE NE MILNE DAT SS DOO Periods 119 10 14 185 Period 1 0.000100 OW 20200826 09008770042 Period 2 0833 1970 192 1913 10135010021710 1736 100 10171605 1529 Period 2.94122129 2.775 2.723 2673 25772487 242 222 22463174 Perled 4 2100 302 3.0 371 363035453 405 3312317030372270 2539 Periods 2.600 4853470 450018243294212 399037912008 2433 3.774 3.121 2091 Period 5795580154115120491742343554138803600340 33 Period 7 7285472 620 000 5700 5502 520644684428 403 1112 7605 period 16573670204T3 $463 63101471640 43 OP 3 Period 9 3.5662762778674357.10.2006 247 705324045407 433 CS Period 10 947138838530311177223 6710 645 650 5210 430 446 &190 Period 1 10 369 0725300 3300 337713964593514535629 437 Period 12 11.25506759 954 385 386 384753610 5167 4795 4435 Period 12.134 2350 6362906249863 1904 10494612552910 Period 14 001230112901056980992964470286006466008 Period 15 13 855 12.8401153011038097125550 7504 11 6 542 56 son 40 Period 2010.048103511487713950121021147593130514093582053 30 Periods. 220221952217400150221270320707770340976451 42 Period 25 30 32 30 15 600 17200 7215700112012206611 5517 4919 Period:402233527385 21 1990 462062355434997 15 99 Periodo QT Period 2 000 000 000 TUOTTE Period 0129000194071 0712067041 period 0961 40.96609930073 02 05 06 Periods 000122274470011 001 070515 041 Periods 0.0002 00145 0.705.000 260 30 30 Pero 0930 000 0.000000 1040204000354 031461 period 011700 T31 OSTE 100.0514040303050364 0733 Period 90640167030603000424030 030800328OH period 10 09060320 0706750040388 022522110010 Period 11 06042010050 42 03506207221612 613 Feld 12 081 07DAT1057 2050 113 Period 130.00 0.001050040000 15001 Period 147007506010000000000121 Periods 0002411035020000 40010000065 period 2002.6640450037731021501 00501 Period 25 5700510 04375020DN 0010060039 000400100010 Period 2 036204030231017400000000010004 Period 40 T3003020100400000 999 Print Dono Pant Done 8 of 10 (10 complete) to Reference ar se Pemods Period 1 Period 2 Period 3 Period 4 Period 5 Period 6 Period 7 Period 8 Period 9 Period 10 1% 2% 4% 5% 5% 8% 10% 1.000 1.000 12% 1.000 14% 16% 1.000 1.000 1.000 20% 1.000 1.000 1.000 2010 2020 2030 1.000 1000 2040 2050 1000 2000 2.060 2080 2.100 3030 3.060 2.120 3.091 2.140 2 160 3.122 2.180 3.153 3.184 3.246 2200 3.310 3374 4.060 4.122 3.440 3.506 4.184 4 246 3572 3.840 4.310 4 375 4.506 4.641 4.779 4921 5.101 5.066 5.204 5215 5.309 5.416 5,368 5.526 5.637 5.867 6.105 6.353 6.610 6.877 742 6.152 6.308 6.468 6.633 6.802 6.975 7.336 7.716 8.115 8536 8.977 9.442 9.930 7214 7434 7.662 7.898 8.142 8.394 8.923 9.487 10.089 10.730 12 142 12.996 8.286 8.583 8.892 9.214 9.549 9.897 10.637 11.436 12 300 13.233 15 327 16.499 9.369 9.755 10.159 10.583 11.027 11.491 12.488 13.579 14776 16.085 17.619 19.086 20.799 10.462 10.950 11.464 12 006 12.578 13.181 14.48715.93717 549 19 337 2321 23521 25.959 11.567 12. 169 12.808 13.486 14.207 14.972 16.645 18.531 20.655 23.045 25. 733 28.755 32 150 12.683 13.412 14 192 15.026 15.917 16.870 18.977 21 384 24.133 27211 30.850 34.931 39 581 13.809 14.680 15.618 16.62717 713 18.882 21 496 24 523 28.029 32089 38:786 42.219 48.497 14.947 15.97417 086 18 29219.599 21.015 24 215 27 975 32 393 37581 43,672 50 818 59 196 17 293 18 599 20.02421.679 23.276 27 152 31.772 37.280 16.097 43.842 51 660 60.965 72.035 26.870 29.778 22.019 | 24 297 33.066 36.786 46.782 57 275 72.052 91025 146.628 185.688 115 380 47.72754 865 249 214 98.347 133.334181871 471981 28.243 32030 36 469 41 846 73.106 342 603 530, 312 34.785 40 568 750 9481181 882 47 675 56 085 79.058 113283 164 494 241.333356.787 66.439 48.886 60 402 75 40195 026120 800 154 762259 057 142 593767.0911 342 0252,860.757 4 163 213 7343.858 Period 11 Period 12 Period 13 Period 14 Period 15 Period 20 Period 25 Period 30 Period 40 Print Done ECIESTA Complete) i Reference Penods Period 1 Period 2 Period 3 Period 4 Period 5 1% 1010 1.020 1.030 1.041 1.051 2% 1,020 1.040 1.061 1.082 1.104 3% 1.030 1.061 1.093 1.126 1.159 1.040 1.082 1.125 1.170 1.217 2014 Period 6 Period 7 Period 8 Period 9 Period 10 1.062 1.072 1083 1.094 1 105 1.126 1.149 1.172 1.195 1.219 1.194 1 230 1.267 1.305 1 344 1.265 1.316 1.369 1.423 1480 5% 5% 8% 10% 12% 14% 16% 1.050 1.060 1.080 20% 1.100 1120 1140 1.103 1.160 1.124 180 1.166 1 200 1210 1254 1300 1 346 1.158 1392 1.191 1.440 1.260 1.331 1.405 1.482 1561 1.216 1728 1.262 1.360 1.464 1.574 1.689 1811 1939 1.276 1.338 1.469 1611 1.762 1.925 2100 2.288 2488 1.340 1.419 1.587 1.772 1.974 2 195 2436 2700 2.986 1407 1.504 1.714 1949 2211 2502 28263.186 3533 1.477 1.594 1.851 2 144 2.476 2853 3.278 3.759 4.300 1551 1689 1.999 2358 1 2773 3.252 3803 5 160 1629 1.791 2 159 2.594 3.106 3.707 5234 6.192 1.710 1 898 2.332 2853 3.479 4226 6.176 7430 1.796 2012 2518 3138 3.896 4818 5.936 2288 8916 1 886 2. 133 2720 4363 5:492 6.896 8:599 10.699 1980 2 261 2.937 3797 4.887 6.261 7.988 10.147 12838 2079 2.397 3.172 177 6.474 2.128 9266 15207 TE974 2653 3207 38 338 42.661 6.727 9 646 13.743 19.46127393 05.36 3388 4292 8.848 10.836 17.000 28.452 40 87462 559 4.322 5743 10 063 17 449 29.950 60 950 95.850 43.371 237 376 7040 10 286 2472546 25993.051188.884 378 721 750 3781 469.772 Period 11 Period 12 Period 13 Period 14 Period 15 1.116 1.127 1.138 1.149 1.161 1.243 1 268 1.294 1.319 1.346 1.384 1426 1469 1.513 1558 1539 1.601 1.665 11732 1.801 3.452 Period 20 Period 25 Period 30 Period 40 11220 1.282 1 348 1489 1.486 1 641 1.811 2 208 1 806 094 2427 3262 2191 2 666 3.243 4.801 Dora