- X Data Table Consider how Frost Valley, a popular ski resort, could use capital budgeting to decide whether the $9.5 million Brook 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. Assume that Frost Valley's managers developed the following estimates concerning a planned expansion to its Brook Park Lodge (all numbers assumed): 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 Number of additional skiers per day...... 125 Average number of days per year that weather conditions allow skiing at Frost Valley. 157 Useful life of expansion (in years).. 10 Average cash spent by each skier per day $ 242 Average variable cost of serving each skier per day $ 134 Cost of expansion $ 9,500,000 Discount rate 14% Assume that Frost Valley uses the straight-line depreciation method and expects the lodge expansion to have a residual value of $800,000 at the end of its ten-year life. It has already calculated the average annual net cash inflow per year to be $2,119,500. Print Done E12-33A (simila Reference Reference uld be a Consider how Frost Valle (Click the icon to vie (Click the icon to vie Present Value of Annuity of $1 Periods 1% 2% 3% 4% 5% 6% 8% 10% 12% 14% 16% 18% 20% Period 0.990 0.980 0.971 0.962 0.952 0.943 0.926 0.909 0.893 0.877 0.862 0.847 0.833 (Click the icon to vie Read the requirements Requirement 1. What is Calculate the net present We net pr st Net present value of expl Period 1.970 1.942 1.913 1.886 1.859 1.833 1.783 1.736 1.6901.647 1.605 1.566 1.528 2 Period 2.941 2.884 2.829 2.775 2.723 2.673 2.577 2.487 2.402 2.322 2.246 2.174 2.106 3 Period 3.902 3.808 3.717 3.630 3.546 3.465 3.312 3.170 3.037 2.914 2.798 2.690 2.589 Period 4.853 4.713 4.580 4.452 4.329 4.212 3.993 3.791 3.605 3.433 3.274 3.127 2.991 5 Period 5.795 5.601 5.417 5.242 5.076 4.917 4.623 4.355 4.111 3.889 3.685 3.498 3.326 6 Period 6.728 6.472 6.230 6.002 5.786 5.582 5.206 4.868 4.564 4.288 4.039 3.812 3.605 Period 7.652 7.3257.020 6.7336.463 6.210 5.747 5.335 4.968 4.639 4.344 4.078 3.837 Period 8.566 8. 1627.786 7.435 7.108 6.8026.247 5.759 5.328 4.946 4.607 4.303 4.031 Period 9.471 8.983 8.530 8.111 7.7227.360 6.710 6. 145 5.650 5.216 4.833 4.494 4.192 10 Period 10.368 9.787 9.253 8.760 8.306 7.887 7.139 6.495 5.938 5.453 5.029 4.656 4.327 11 Period 11.255 10.575 9.954 9.385 8.863 8.384 7.536 6.814 6.194 5.660 5.197 4.793 4.439 12 Period 12.134 11.348 10.635 9.986 9.394 8.853 7.904 7.103 6.424 5.842 5.342 4.910 4.533 13 Period 13.004 12.10611.296 10.563 9.899 9.295 8.244 7.367 6.628 6.002 5.468 5.008 4.611 14 Period 13.865 12.84911.938 11.118 10.380 9.7128.559 7.606 6.811 6.142 5.575 5.092 4.675 115 Period 18.046 16.351 14.87713.590 12.462 11.470 9.818 8.5147.469 6.623 5.929 5.353 4.870 20 Period 22.023 19.52317.413 15.62214.094 12.783 10.6759.077 7.8436.873 6.097 5.467 4.948 25 Period 25.80822.39619.600 17.292 15.37213.765 11.258 9.4278.055 7.003 6.1775.517 4.979 30 Present Value of $1 Periods 1% 2% 3% 4% 5% 6% 8% 10% 12% 14% 16% 18% 20% Period 0.990 0.980 0.971 0.962 0.952 0.943 0.926 0.909 0.893 0.877 0.862 0.847 0.833 11 Period 0.9800.961 0.943 0.925 0.907 0.890 0.857 0.826 0.797 0.769 0.743 0.7180.694 2 Period 0.971 0.942 0.915 0.8890.864 0.840 0.794 0.751 0.712 0.675 0.641 0.609 0.579 3 Period 0.961 0.924 0.888 0.855 0.823 0.792 0.735 0.683 0.636 0.592 0.552 0.516 0.482 4 Period 0.951 0.906 0.863 0.822 0.784 0.747 0.681 0.621 0.567 0.519 0.476 0.437 0.402 5 period 0.942 0.888 0.837 0.790 0.746 0.705 0.630 0.564 0.507 0.456 0.410 0.370 0.335 16 period 0.933 0.871 0.813 0.760 0.711 0.665 0.583 0.513 0.452 0.400 0.354 0.314 0.279 17 Period 0.923 0.853 0.789 0.731 0.677 0.627 0.540 0.467 0.404 0.351 0.305 0.266 0.233 Period 0.914 0.837 0.766 0.703 0.6450.592 0.500 0.424 0.361 0.308 0.263 0.225 0.194 period 0.905 0.820 0.744 0.676 0.614 0.558 0.463 0.386 0.322 0.270 0.227 0.191 0.162 10 Period 0.896 0.804 0.722 0.650 0.585 0.527 0.429 0.350 0.287 0.237 0.195 0.162 0.135 11 Period 0.887 0.788 0.701 0.625 0.557 0.497 0.397 0.319 0.257 0.208 0.168 0.137 0.112 12 Period 0.879 0.773 0.681 0.601 0.530 0.469 0.368 0.290 0.229 0.182 0.145 0.116 0.093 13 Period 0.870 0.758 0.661 0.577 0.505 0.442 0.340 0.263 0.205 0.160 0.125 0.099 0.078 Period 0.861 0.743 0.642 0.555 0.481 0.417 0.315 0.239 0.183 0.140 0.108 0.084 0.065 15 Period 0.820 0.673 0.554 0.456 0.377 0.312 0.215 0.149 0.104 0.073 0.051 0.037 0.026 20 period 0.780 0.610 0.478 0.375 0.295 0.233 0.146 0.092 0.059 0.038 0.024 0.016 0.010 25 Period 0.742 0.552 0.412 0.308 0.231 0.1740.099 0.057 0.033 0.020 0.012 0.007 0.004 30 Print Done Print Done Enter any number in the -X i Reference i Reference -X Hel on 14% 1.000 16% 1.000 18% 1.000 20% 1.000 1.160 2.140 2.160 2.180 2.200 Future Value of Annuity of $1 Periods 1% 2% 3% 4% 5% 6% 8% 10% 12% Period 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1 Period 2.010 2.0202.0302.040 2.050 2.060 2.080 2.100 2.120 2 Period 3.0303.0603.0913.122 3.153 3.184 3.246 3.310 3.374 3 Period 4.0604.122 4.1844.246 4.310 4.375 4.506 4.641 4.779 14 Period 5.101 5.204 5.309 5.416 5.526 5.637 5.867 6.105 6.353 15 20% 1.200 1.440 1.728 2.074 2.488 3.440 3.506 3.572 Future Value of $1 Periods 1% 2% 3% 4% 5% 6% 8% 10% 12% 14% 16% 18% Period 1 1.010 1.020 1.030 1.040 1.050 1.060 | 1.080 1.100 1.120 1.140 1.180 Period 21.020 1.040 1.061 1.0821.1031.124 1.1661.210 1.254 1.300 1.346 1.392 Period 31.030 1.061 1.093 1.125 1.158 1.191 1.260 1.331 1.405 1.482 1.561 1.643 Period 41.041 1.0821.126 | 1.170 1.216 1.262 1.360 1.464 1.574 1.689 1.811 1.939 Period 51.0511.104 1.159 1.217 1.276 | 1.338 1.469 1.611 1.762 1.925 2.100 2.288 Period 61.0621.126 1.1941.265 1.3401.419 1.587 1.772 1.974 2.195 2.436 2.700 Period 71.072 1.149 1.230 1.316 1.407 1.504 1.7141.949 2.211 2.502 2.826 3.185 Period 81.083 1.1721.267 1.369 1.4771.594 1.851 2.144 2.476 2.853 3.278 3.759 Period 9 1.094 1.195 1.305 1.423 1.551 1.689 1.999 2.358 2.773 3.252 3.803 4.435 Period 1.105 1.219 1.344 1.480 1.629 1.791 2.159 2.594 3.106 3.707 4.411 5.234 110 3.640 4.921 5.066 5.215 5.368 heg 2.986 3.583 4.300 5.160 6.192 6.610 6.877 7.154 7.442 8.977 9.442 9.930 1.116 1.243 1.384 1.539 1.710 1.898 2.332 2.853 3.479 4.226 5.1176.176 7.430 11.414 12.142 12.916 1.127 1.268 1.426 1.601 1.796 2.012 2.518 3.138 3.896 4.818 5.9367.288 8.916 Period 6.152 6.308 6.468 6.633 6.802 6.975 | 7.336 7.7168.115 8.536 16 Period 7.214 7.4347.6627.898 8.142 8.394 8.923 9.487 9.487 10.089 10.089 10.730 7 Period 8.286 8.583 8.8929.214 9.549 9.897 10.637 11.436 12.300 13.233 18 Period 9.369 9.755 10.15910.583 11.027 11.491 12.488 13.579 14.776 16.085 19 Period 10.462 10.950 11.464 12.006 12.578 13.181 14.487 15.937 17.549 19.337 110 14.240 15.327 16.499 10.699 17.519 19.086 20.799 Period 11 Period 12 Period 13 Period 14 Period 15 1.138 1.294 1.469 1.665 1.886 2.133 2.720 3.452 4.363 5.492 6.886 8.599 1.149 1.319 1.513 1.732 1.980 2.261 2.937 3.797 4.8876.261 7.988 10.147 12.839 21.32 23.521 25.959 1.161 1.346 1.558 1.801 2.079 2.397 3.172 4.177 5.474 7.138 9.266 11.974 15.407 25.733 28.755 32.150 1.220 1.486 1.806 2.191 2.653 3.207 4.661 6.727 9.646 13.743 19.461 27.393 38.338 30.850 34.931 39.581 1.282 1.641 2.094 2.666 3.386 4.292 6.848 10.835 17.000 26.462 40.874 62.669 95.396 Period 11.567 12. 16912.80813.486 14.207 14.972 16.645 18.531 20.655 23.045 11 Period 12.68313.412 14.192 15.026 15.917 16.870 18.977 21.384 24.133 27.271 12 Period 13.80914.680 15.618 16.627 17.713 18.882 21.495 24.523 28.029 32.089 13 Period 14.94715.974 17.08618.292 19.599 21.015 24.215 27.97532.393 37.581 14 Period 16.097 17.29318.59920.024 21.57923.276 27.152 31.772 37.280 43.842 115 36.786 42.219 48.497 Period 20 Period 25 Period 30 Period 40 1.348 1.811 2.427 3.243 4.3225.743 10.06317.449 29.960 50.950 85.850 143.371 237.376 43.672 50.818 59.196 1.489 2.208 3.262 4.801 7.040 10.286 21.725 45.25993.051188.884 378.721750.3781,469.772 51.660 60.965 72.035 Print Period 22.01924.297 26.87029.778 33.066 36.786 45.762 57.275 72.052 91.025 115.380 146.628 186.688 20 Period 28.243|32.03036.459 41.646 47.727 54.865 73.106 98.347 133.334 181.871 249.214 342.603 471.981 25 125 Period 34.78540.568 47.57556.085 66.43979.058 113.283 164.494241.333 356.787 530.312 790.948 1,181.88: 30 Done Done Print Done Y TITIGT LITE CUTE TOT CITA CICIT CIRCU VITOR TUNCI