Consider how Soar Mountain, a popular ski resort, could use capital budgeting to decide whether the $9.5 million State 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 future value annuity factor table.) Read the requirements (Click the icon to view the present value factor table.) (Click the icon to view the future value factor table.) C 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 Data table - tab ble Assume that Soar Mountain's managers developed the following estimates concerning a planned expansion to its State Park Lodge (all numbers assumed): Number of additional skiers per day..... Average number of days per year that weather 118 al conditions allow skiing at Soar Mountain .. 164 in Useful life of expansion (in years)....... 10 S Average cash spent by each skier per day.......... $ 238 Average variable cost of serving each skier per day. $ Cost of expansion... Discount rate.... 12% Assume that Soar Mountain uses the straight-line depreciation method and expects the lodge expansion to have a residual value of $700,000 at the end of its ten-year life. It has already calculated the average annual net cash inflow per year to be $2,012,608. 134 $ 9,500,000 Print Done bly Homework Reference 11 Question 7,12-3 Get more help 13 E K 4 D O Point of S Pirt Oure 5 6 49 A AB -a 1 R T Y U I F G H -> Cara -O O K C V B N M P L V- SC Homework Reference 883 Quenton 7, 613-3 boksta Get- Pint 95 Done 6 47 00 6 9 4 Clear a 00 13 1 J K L V E R T Y U 1 o P 3 43 74 F G HH X C V B N M 5 D H and . V- H >> A- . command 3 option Soty Homework Reference Get more help 93 x $ 4 Question 7,13-0 O 55 E R T D C Pre Done 96 Clear AT 6 7 8 61 . 9 0 Y U 1 0 P LL F G H J K L V < B N M s 12 Homework K Reference Question 7,13- O Widen Get more help- 63 W E S x $ 4 D t 55 Dere 6 10 47 00 9 R T Y U 1 F Cer 1 -O 0 O 0 G H J K L P C V < B N M V- A hapter 12 Homework K- Question 7, E12-56B (book/static) Part 1 of 4 HW Score: 63.89%, 5.75 of 9 points O Points: 0 of 3 Consider how Soar Mountain, a popular ski resort, could use capital budgeting to decide whether the $9.5 million State 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 future value annuity factor table.) Read the requirements (Click the icon to view the present value factor table.) (Click the icon to view the future value factor table.) 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 Save