I Learning Objective $4$

Question $5,$ SM$11-12($similar to$)$

HW Score: $31\mathrm{.}82\%,14$ of $44$ points

Part $1$ of $2$

Polnts: $4$ of $22$

Consider how Hudson Valley Ski Lodge could use capital budgeting to decide whether a $$14,000,000$ lodge expansion would be a good investment. Assume Hudson Valley Ski Lodge's managers developed the following estimates concerning the expansion:

View the estimates.

View the additional information.

What is the project's NPV $($round to nearest dollar$)?$ Is the investment attractive? Why or why not?

View the Present Value of $$1$ table.

View the Present Value of Ordinary Annuity of $$1$ table.

Calculate the net present value of the expansion. $($Enter any factor amounts to three decimal places,

X$.$XXX$.$ Round to the nearest whole dollar.$)$

$\backslash$table$[[$Years$,,\backslash$table$[[$Net Cash$],[$Inflow$]],\backslash$table$[[$Annuity PV Factor$],[)=10\%,n=(8$