- X Data table Assume that Flint Valley's managers developed the following estimates concerning a planned expansion to its River Park Lodge (all numbers assumed): Number of additional skiers per day ....... 124 Average number of days per year that weather conditions allow skiing at Flint Valley.. 160 Useful life of expansion (in years) 9 Average cash spent by each skier per day........ 247 Average variable cost of serving each skier per day . $ 145 Cost of expansion... $ 9,000,000 Discount rate 14% Assume that Flint Valley uses the straight-line depreciation method and expects the lodge expansion to have a residual value of $700,000 at the end of its nine-year life. It has already calculated the average annual net cash inflow per year to be $2,023,680. Print Done Consider how Flint Valley, a popular ski resort, could use capital budgeting to decide whether the 59 million River 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 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