Question: please answer read requirments Consider how Root Valley Brook Park Lodge could use capital budgeting to decide whether the $11,500,000 Brook Park Lodge expansion would




Consider how Root Valley Brook Park Lodge could use capital budgeting to decide whether the $11,500,000 Brook Park Lodge expansion would be a good (Click the icon to view Present Value of $1 investment. Assume Root Valley's managers developed the following estimates concerning the expansion: (Click the icon to view Present Value of (Click the icon to view the estimates.) Ordinary Annuity of $1 table.) (Click the icon to view additional information.) What is the project's NPV (round to nearest dollar)? Is the investment attractive? Why nr whu nni? Calculate the net present value of the expansion. (Enter any factor amounts to three decimal places, X,XXX. Round to the nearest whole dollar.) Assume that Root Valley uses the straight-line depreciation method and expects the lodge expansion to have a residual value of $850,000 at the end of its ten-year life. They have already calculated the average annual net cash inflow per year to be $2,620,618. Data table Present Value of 51 Present Value of Ordinary Annuity of 51
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