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o Consider how Front Valley, a popular ski resort, could use capital budgeting to decide whether the 58 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 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 expansions 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 investments attractive? Why or why not? Calculate the projects 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 projects NPV Data Table - X Reference Assume that Frost Valley's managers developed the following estimates concerning a planned expansion to its Brook Park Lodge (al numbers assumed) Number of additional sklers per day 117 Average number of days per year that weather conditions allow sking at Frost Valley 164 Usefu we of expansion in years) Average cash spent by each skler per day $ 244 Average variable cost of saving each skler per day $ 138 Cost of expansion $ 8.000000 Discount rate 149 Assume that Frost Valley uses the right line depreciation method and expects the lodge expansion to have a residual value of $750,000 at the end of its eight year life. It has already calculated the average annual net cash flow per year to be 52,033,928 >Present Value of Annuity of $1 Periods 15 2% 3% 45 6% 10% 17% 185 16% 18% 20% 1 69900980097109620962109430926 0909 0893 0877 086208470833 2 1970 1942 1913 1886 1859 1833 1783 1736 1690 1647 1.605 1566 1528 2941238428292.77527232 6732577 2 487 24022 322 2246 2.174/2.100 4 39023 8083.717 363035463.465 3.312 3.1703.0372 914270826902 509 5 4,853 4.7134 5804452 432942123.99337913.6053433274 3.127 2 991 5.795 5601 5.417 5.2425.0764917 46234355 41113 093685 3.4583326 7 6.728647262306 002578655625.206486845644260403930123605 8 7652732570206.733 6.463 621057475335496846943440783.837 9 8.50 8. 1627.705 7.435 71086 6026 247 575953284904 GOT 43034031 10 9.47189038 530 8111 772273606710616556505216403044944192 11 10366978792538.7600 30678877.139 6.495 5938 5450502946564327 12 1125510 575 995493858 8638384753568146156605 19747934439 13 12 134 11 348 10.63599369.3948853|7904710364245.84253024910453) 14 130041210611290/10563 9899929582447367662860025.468 50084611 15 1386512 849 11950 11.11810 380 9.7128659760668116142557550924675 20 18 04616 351 14.877|13.590 12 462 11.470981085147.669 6623592953534870 25 122 023 1952317413 15 622 14 094 1278310 6759077784368736.095467 4948 3025 BOB 22 396 19 600 17.292 15 372 13.765 11 250 9.42780557003617755114979 40 32.835 27 355 23 115 19 793 17 159 15 046 11 25 9 7792471056733 5 4 997 P Done Print Done W redavao. i Reference X Jod investment Consider how Frost Valley, a po Click the icon to view the (Click the icon to view the (Click the icon to view the ff Read the requirements Jesent value.) Requirement 1. What is the pro Calculate the not present value Net present value of expansion Present Value of $1 Periods 1% 2% 3% 5% 6% 8% 10% 12% 14% 16% 18% 20% 1 0.990 0.980 0.971 0.9620.952 0.943 0.926 0.9090.893 0.877 0.862 0.847 0.833 2 0.980 0.961 0.943 0.925 0.907 0.890 0.8570.826 0.797 0.769 0.743 0.7180.694 3 0.971 0.942 0.915 0.889 0.864 0.840 0.794 0.751 0.712 0.675 0.6410.609 0.579 4 0.961 0.9240.888 0.855 0.823 0.792 0.735 0.683 0.636 0.592 0.552 0.516 0.482 5 0.951 0.906 0.863 0.822 0.784 0.7470.681 0.621 0.567 0.519 0.476 0.437 0.402 6 0.9420 888 0.837 0.790 0.746 0.705 0.630 0.564 0.507 0.4560.410 0.3700335 7 0.933 0.871 0.813 0.7600.711 0.665 0.583 0.513 0.452 0.4000354 0.3140.279 8 0.923 0.853 0.789 0.731 0.677 0.627 0.540 0.467 0.4040.351 0.305 0.266 0233 9 0.9140.837 0.766 0.7030645 0.5920.500 0.424 0.361 0.308 0.263 0225 0.194 10 0.905 0.820 0.744 0.676 0.614 0.558 0.463 0.386 0.322 0 2700227 0.1910.162 11 0 896 0.8040.722 0.650 0.585 0.527 0.429 0.350 0.287 0.237 0.1950.162 0.135 12 0.887 0.788 0.701 0.625 0.5570.497 0.397 0.3190 2570 208 0.168 0.1370.112 13 0.879 0.773 0.681 0.601 0.530 0.469 0.368 0.290 0.229 0.182 145 0.116 0.093 14 0.870 0.758 0.661 0.577 0.505 0.442 0.3400 2630 2050.160 0.125 0.099 0.078 15 0 861 0.743 0.642 0.555 0.4810417 0.315 0.2390.183 0.1400108 0.084 0.065 20 0.8200.673 0.5540.456 0.377 0.3120215 0.149 0.10400730.051 0.037 0.026 25 0.7800 6100.478 0.375 0.2950 233 0.146 0.092 0.059 0.038 0.024 0.0160010 30 0.742 0.5520.412 0.308 0231 0.1740 099 0.057 0.033 0.0200.0120.007 0.004 40 06720 4530 307 0208 0.142 0097 0.046 0.022 0.0110.005 0.003 0.001 0.001 Is the investment attractive? WI The expansion is Requirement 2. Assume the es Calculate the project's NPV. (Rd Net present value of expansion Is the investment attractive? Wil Print Done Without a residual value the ex Consider how E! Click the (Click the Reference (Click the Read the regul 8% Requirement Calculate the 5368 Net present ve 8394 Is the investme Periods 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 20 25 30 40 The expansion 1% 1.000 2.010 3.030 4.060 5.101 6.152 7.214 8.286 9.369 10.462 11 567 12.683 13.809 14.947 16.097 22.019 28 243 34.785 48.885 2% 1.000 2.020 3060 4.122 5 204 6.308 7.434 8.583 9.755 10.950 12.169 13 412 14.680 15.974 17.293 24 297 32 030 40.568 60.402 3% 1.000 2.030 3.091 4.184 5.309 6.468 7.662 8.892 10.159 11.464 12 808 14. 192 15.618 17.036 18.599 26 870 36,459 47.575 75 401 4% 1.000 2.040 3.122 4.246 5.416 6633 7.898 9.214 10.583 12.006 13.406 15 026 16.627 18 292 20.024 29.778 41.646 56.085 95.026 Future Value of Annuity of $1 5% 6% 10% 12% 14% 16% 18% 20% 1.000 1000 1.000 1 000 1.000 1.000 1.000 1.000 1000 2050 2.060 2080 2.100 2.120 2.140 2.160 2 180 2200 3.153 3.184 3.246 3.310 3.374 3.440 3.506 3.572 3.640 4.310 4.375 4 506 4641 4.779 4.921 5.066 5.215 5526 5.637 5867 6.105 6.353 6610 6.877 7.154 7.442 6.802 6.975 7.336 7.716 8.115 8.536 8977 9442 9930 8.142 8.923 9.487 10.089 10.730 11.414 12.142 12 916 9549 9.897 10.637 11.436 12.300 13.233 14240 15.327 16.499 11.027 11.491 12.488 13.579 14.776 16.065 17 519 19 086 20.799 12 578 13.181 14 487 15.937 17549 19.337 21.321 23 521 25.959 14 207 14972 16.645 18 531 20.655 23.045 25 733 28.755 32.150 15 9 16.870 18.977 21.384 24 133 27.271 30 850 34.931 39 581 17.713 18.882 21.495 24523 28 029 32 089 36 786 42 219 48497 19.599 21015 24 215 27 975 32.393 37581 43 672 50 818 59.196 21.579 23.276 27 152 31 772 37 280 43.842 51.660 60 965 72 035 33 066 36.786 45.762 57 275 72052 91.025 115380 146 628 106.688 47.727 54 855 73.106 98.347 133 334 181 871 249 214 342 603 471 981 66.439 79 058 113 283 164 494 241333356.787 530312790 948 1.181.882 120 800 154 762 259 057 442 593 767 091 1342 02523607574 163 2137343 858 Requirement Calculate the Net present va Is the investme Without a resid Print Done Consider how (Click the (Click the Reference Click the Read the regu 10% 1 Requirement Periods 1 2. 3 4 5 Calculate the Net present ve Is the investme 6 7 8 9 10 1% 1.010 1.020 1.030 1.041 1.051 1.062 1.072 1.083 1.094 1.105 1.116 1.127 1.138 1.149 1.161 1220 1.282 1.348 1.489 2% 1.020 1.040 1.061 1.082 1.104 1.126 1.149 1.172 1.195 1.219 1.243 1.268 1.294 1.319 1.346 The expansion 3% 1.030 1.061 1 093 1.126 1.159 1.194 1.230 1.267 1.305 1.344 1.384 1.426 1.469 1.513 1.558 1 806 2094 2.427 3.262 1.040 1.082 1.125 1.170 1.217 1.265 1.316 1.369 1.423 1.480 1.539 1.601 1.665 1.732 1.801 2.191 2666 3243 4 801 5% 1.050 1.103 1.158 1216 1.276 1 340 1 407 1.477 1551 1629 1.710 1.796 1.886 1.980 2 079 2653 3.386 4322 7.040 Future Value of $1 6% 8% 12% 14% 16% 18% 20% 1,060 1.080 1100 1120 1.140 1.160 1 180 1200 1.124 1.166 1.210 1.254 1.300 1 346 1 392 1440 1.191 1.260 1.331 1.405 1.482 1.561 1.643 1.728 1.262 1.360 1.464 1.574 1.689 1.811 1939 2074 1.338 1.469 1.611 1.762 1.925 2.100 2288 2.488 1.419 1.587 1.772 1974 2. 195 2436 2.700 2.986 1.504 1.714 1.949 2211 2502 2.826 3.185 3583 1.594 1.851 2144 2 476 2853 3278 3.759 4300 1.689 1.999 2.358 2.773 3.252 3.803 4435 5.160 1.791 2. 159 2594 3.106 3.707 4.411 5234 6192 1.898 2.332 2.853 3.479 4226 5 117 6.176 7430 2012 2518 3.138 3.896 4.818 5936 7.288 8.916 2.133 2720 3 452 4363 5.492 6 886 8.599 10.699 2.261 2.937 3.797 4887 6.261 7.988 10.147 12.839 2397 3.172 4.177 5474 7.138 9.266 11.974 15.407 3.207 4661 6.727 9646 13743 19.461 27.393 38 338 4.292 6 848 10.835 17.000 26.462 40.874 62 669 95 396 5.743 10.063 17.449 29 960 50.950 85 850 143371 237376 10 286 21 725 45.259 93.051 188.884 378 721750 378 1.469.772 Requirement Calculate the Net present ve 11 12 13 14 15 20 25 30 40 Is the investm 1.486 1.641 1.811 2 208 Without a resid Print Done Enter any num

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