Vail Resorts, Inc. (MTN), announced a $330,542 million expansion of lodging properties, ski lifts, and terrain in Park City, Utah. Assume that this investment is estimated to produce $82,000 million in equal annual cash flows for each of the first 9 years of the project life.

Present Value of an Annuity of $1 at Compound Interest

Year	6%	10%	12%	15%	20%
1	0.943	0.909	0.893	0.870	0.833
2	1.833	1.736	1.690	1.626	1.528
3	2.673	2.487	2.402	2.283	2.106
4	3.465	3.170	3.037	2.855	2.589
5	4.212	3.791	3.605	3.353	2.991
6	4.917	4.355	4.111	3.785	3.326
7	5.582	4.868	4.564	4.160	3.605
8	6.210	5.335	4.968	4.487	3.837
9	6.802	5.759	5.328	4.772	4.031
10	7.360	6.145	5.650	5.019	4.192

a. Determine the expected internal rate of return of this project for 9 years, using the present value of an annuity of $1 table above. fill in the blank 1 of 1 %

b. Identify the uncertainties that could reduce the internal rate of return of this project?

Warm weather conditions, or no snowRecessionary economic conditions that reduce the demand for ski holidaysCompetitor property improvements that siphon demand from the projectIncreased fuel costs that increase the cost of travel to ski resorts, thus reducing demand from nonlocal patronsIndustry overbuilding that causes a price war to maintain volumeAll of theseAll of these