Requirement 1. What is the project's NPV? Is the investment attractive? Why or why not? Calculate...

  

 

  

  

  

  
 

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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 $ 2,944,894 Is the investment attractive? Why? The expansion is an attractive project because its NPV is positive Requirement 2. Assume the expansion has no residual value. What is the project's NPV? is the investment still attractive? Why or why not? Calculate the project's NPV (Round your answer to the nearest whole dollar Use parentheses or a minus sign for a negative net present value) Cimilar Is the investment attractive? Why? The expansion is an attractive project because its NPV is positive Requirement 2. Assume the expansion has no residual value. What is the project's NPV? Is the investment still attractive? Why or why not? Calculate the project's 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 $ 2.005.694 is the investment attractive? Why? Without a residual value, the expansion is still attractive because of the project's positive NPV Assume that Bear Valley's managers developed the following estimates concerning a planned expansion to its Waterfall Park Lodge (all numbers assumed): Number of additional skiers per day. Average number of days per year that weather conditions allow skiing at Bear Valley... Useful life of expansion (in years). Average cash spent by each skier per day........ $ Average variable cost of serving each skier per day ...... **** $ 124 161 9 236 136 e 500.000 conditions allow skiing at Bear Valley.. Useful life of expansion (in years). Average cash spent by each skier per day... Average variable cost of serving each skier per day . $ Cost of expansion $ 8,500,000 14% Discount rate.. Assume that Bear 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 nine-year life. It has already calculated the average annual net cash inflow per year to be $1,996,400. MY ... .... **** ... 161 9 236 $ 136 Present Value of Annuity of $1 Periods 1% 2% 3% 4% 20% 5% 6% 8% 10% 12% 14% 16% 18% Period 1 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 1.970 1.942 1.913 1.886 1.859 1.833 1.783 1.736 1.690 1.647 1.605 1.566 1.528 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 3.902 3.808 3.717 3.630 3.546 3.465 3.312 3.170 3.037 2.914 2.798 2.690 4.853 4.713 4.580 4.452 4.329 4.212 3.993 3.791 3.605 3.433 3.274 3.127 5.795 5.601 5.417 5.242 5.076 4.917 4.623 4.355 4.111 3.889 6.728 6,472 6.280 6.002 5.786 5.582 5.206 4.868 4.564 4.288 7.652 7.325 7.020 6.733 6.463 6.210 5.747 5.335 4.968 4.639 8.162 7.786 7.435 7 108 6.802 6.247 5.759 5.328 4.946 8.983 8.530 8.111 7.722 7.360 3.685 3.498 3.326 4.039 3.812 3.605 4.344 4.078 3.837 8.566 4.303 4.031 4 607 6.710 6.145 5.650 5.216 4.833 9.471 4.494 4 192 Period 2 Period 3 Period 4 Period 5 Period 6 Period 7 Period 8 Period 9 Period 10 2.589 2.991 EVITOMT 0.720 U.TIZ 0:200 U.UUE U.TUU J.JUE V.ZUO 5.029 5.197 Period 8 7.652 7.325 7.020 6.733 6.463 6.210 Period 9 8.566 8.162 7.786 7.435 7.108 6.802 Period 10 9.471 8.983 8.530 8.111 7.722 7.360 Period 11 10.368 9.787 9.253 8.760 8.306 7.887 7.139 6.495 5.938 5.453 Period 12 11,255 10.575 9.954 9.385 8.863 8.384 7.536 6.814 6.194 5.660 Period 13 12.134 11.348 10.635 9.986 9.394 8.853 7.904 7.103 6.424 5.842 5.342 8.244 7.367 6.628 6.002 5.468 8.559 7.606 6.811 6.142 5.575 16.351 14.877 13.590 12.462 11.470 9.818 8.514 7.469 6.623 5.929 19.523 17.413 15.622 14.094 12.783 10.675 9.077 7.843 6.873 6.097 22.396 19.600 17.292 15.372 13.765 11.258 9.427 8,055 7.003 6.177 27.355 23.115 19.793 17.159 15.046 11.925 9.779 8.244 7.105 6.233 Period 14 13.004 Period 15 13.865 12 106 11.296 10.563 9.899 9.295 12.849 11.938 11.118 10 380 9.712 Period 20 18.046 Period 25 22.023 Period 30 25 808 Period 40 32 835 7.000 T.JUT T.LUU 1.000 0.012 0:000 4.078 3.837 5.747 5.335 4.968 4.639 4.344 6.247 5.759 5.328 4.946 4.607 4.303 6.710 6.145 5.650 5.216 4.833 4.494 4.192 4.031 4.656 4.793 4.910 5.008 5.092 5.353 5.467 5.517 4.327 4.439 4.533 4.611 4.675 4.870 4.948 4.979 5.548 4.997 Present Value of $1 3% 4% Periods 1% 2% 5% 6% 8% 10% Period 1 0.990 0.980 0.971 0.962 0.952 0.943 0.926 0.909 Period 2 Period 3 Period 4 Period 5 Period 6 Period 7 Period 8 Period 9 Period 10 0.718 0.694 0.641 0.609 0.579 12% 14% 16% 18% 0.893 0.877 0.862 0.847 0.980 0.961 0.943 0.925 0.907 0.890 0.857 0.826 0.797 0.769 0.743 0.971 0,942 0.915 0.889 0.864 0.840 0.794 0.751 0.712 0.675 0.961 0.924 0.888 0.855 0.823 0.792 0.735 0.683 0.636 0.592 0.951 0.906 0.863 0.822 0.784 0.747 0.681 0.621 0.705 0.630 0.564 0.665 0.583 0.513 0.731 0.677 0.627 0.540 0.467 0.703 0.645 0.592 0.500 0.424 0.676 0.614 0.558 0.463 0.386 0.552 0.516 0.482 0.476 0.437 0.402 0.567 0.519 0.942 0.888 0.837 0.790 0.746 0.933 0,871 0.813 0.760 0.711 0.923 0.853 0.789 0.914 0.837 0.766 0.905 0.820 0.744 0.507 0.456 0.452 0.400 0.354 0.335 0.314 0.279 0.404 0.351 0.305 0.266 0.233 0.361 0.308 0.263 0.225 0.194 0.322 0.270 0.227 0.191 0.162 20% 0.833 0.410 0.370 0.351 0.305 0.266 Period 8 0.923 0.853 0.789 0.731 0.233 0.677 0.627 0.540 0.467 0.404 Period 9 0.914 0.837 0.766 0.703 0.645 0.592 0.500 0.424 0.361 0.308 0.263 0.225 0.194 Period 10 0.905 0.820 0.744 0.676 0.614 0.558 0.322 0.270 0.227 0.191 0.162 0.195 0.162 0.168 0.137 0.896 0.887 0.463 0.386 0.804 0.722 0.650 0.585 0.527 0.429 0.350 0,287 0.237 0.788 0.701 0.625 0.557 0.497 0.397 0.319 0.257 0.208 0.879 0.773 0.681 0.601 0.530 0.469 0.368 0.290 0.870 0.758 0.661 0.577 0.505 0.442 0.340 0.263 0.861 0.743 0.642 0.555 0.481 0.417 0.315 0.229 0.182 0.145 0.116 0.205 0.160 0.125 0.099 0.239 0.183 0.140 0.108 0.084 Period 11 Period 12 Period 13 Period 14 Period 15 Period 20 0.820 0.673 0554 0.456 0.377 0.312 0.215 0.149 0.104 0.073 0.051 0.037 Period 25 0.780 0.610 0.478 0.375 0.295 0.233 0.146 0.092 0.059 0.038 0.024 0.016 Period 30 0.742 0.552 0412 0.308 0.231 0.174 0.099 0.057 0.033 0.020 0.012 0.007 Period 40 0.672 0.453 0.307 0.208 0.142 0.097 0.046 10.022 0.011 0.005 0.003 0.001 0.135 0.112 0.093 0.078 0.065 0.026 0.010 0.004 0.001 Reference Periods 1% 2% Period 1 1.000 1.000 Period 2 Period 3 Period 4 Period 5 Future Value of Annuity of $1 3% 12% 1.000 6% 8% 10% 1.000 1.000 1.000 1.000 2010 2.020 2.030 2.040 2.050 2.060 2080 2.100 2.120 3.030 3.060 3.091 3.122 3.153 3.184 3.246 3.310 3.374 4.060 4.375 4.506 4.641 4.779 5.101 4.122 4.184 4.246 4.310 5.204 5.309 5416 5.526 5.637 5.867 6.105 6.353 Period 6 Period 7 Period 8. Period 9 6.152 6.308 6 468 7.214 7.434 7682 8.286 8.583 9.389 9.755 APA 8.892 10.159 4% 5% 1.000 1.000 6.633 6.802 7-898 8.142 9.214 9.549 10.583 11.027 11.491 annah Anco aman 6.975 8.115 7.336 7.716 8.394 8.923 9.487 10.089 9.897 10.637 11.436 12.300 12:488 13.579 14 776 www. AY MAY $75 14% 16% 18% 1.000 1.000 1.000 2.140 2.160 2180 3.440 3.506 3.572 5.066 5.215 6.877 7.154 4.921 6.610 8.536 8.977 10.730 11.414 13.233 16.085 en any 14.240 17.519 Denne 9.442 12.142 15.327 19.086 PA 20% 1.000 2.200 3.640 5.368 7.442 9.930 12916 16.499 20.799 Reference Perioa o Period 9 Period 10 Period 11 Period 12 Period 13 Period 14 Period 15 0.200 0.003 0.892 214 9.369 9.755 10.159 10.583 10.462 10.950 11.464 12 006 Period 20 Period 25 Period 30 Period 40 11.567 12 169 12.683 13.412 13.809 14.680 14.947 15.974 16.097 17 293 22.019 28 243 24 297 32 030 26.870 36.459 8.549 11.027 12.578 34.785 40.568 47 575 48.886 60.402 75 401 2007 10.037 TE430 12.300 12.488 13.579 14.776 11.491 13.181 14.487 15.937 17.549 23.045 12.808 13.486 14 207 14.972 16.645 18.531 20.655 27.271 14.192 15.026 15.917 16.870 18.977 21.384 24.133 32.089 15.618 16.627 17.713 18 882 21.495 24.523 28.029 37.581 17.086 18.292 19.599 21.015 24 215 27.975 32.393 43 842 18.599 20.024 21.579 23.276 27 152 31.772 37.280 91.025 29 778 33.086 36 786 45.762 57.275 72 052 41.646 47.727 54.885 73.106 98.347 133.334 181.871 56.085 66.439 79.058 113 283 164 494 241.333 356.787 95.026 120.800 154 762 259 057 442 593 767 0911 342 025 13.233 14.240 15.027 16.085 17.519 19.086 19.337 10.499 20.799 21.321 23.521 25.959 25.733 28.755 30.850 34.931 36.786 42.219 43.672 50.818 51.660 60.965 32.150 39.581 48.497 59.196 72.035 186.688 115.380 249.214 530,312 146.628 342.603 471.981 790.948 1,181.882 2.360.757 4.163.213 7.343 858 4 Reference Future Value of $1 Periods 1% 2% 3% 4% 5% 6% Period 1 1.010 1.020 1.030 1.040 1.050 1.060 1.020 1.030 1.041 1.051 1,082 1.072 1.149 1.083 8% 10% 12% 1.080 1.100 1.120 1.140 1.040 1.061 1.082 1.103 1.124 1.166 1.210 1.254 -1.300 1.061 1,093 1.125 1.158 1.191 1.260 1:331 1.082 1.126 1.170 1.216 1.262 1.360 1:464 1.574 1.104 1.159 1.217 1.276 1.338 1.469 1.611 1.762 1.265 1:340 1419 1.587 1.772 1.974 1.316 1.407 1.504 1714 1.949 2211 1.369 1.477 1.594 1.851 2.144 1.999 2:358 684 1.126 1.194 2.195 2.502 1.230 1172 1.267 2476 2.853 1.094 1.195 1.305 1.423 1,551 1.689 15.45 **** (40) AARA hann Period 2 Period 3 Period 4. Period 5 Period 6 Period 7 Period 8 Period 9 14% 16% 18% 1.160 1.180 1.346 1.392 1.405 1.482 1.561 1.643 1.689 1.811 1.939 1.925 2.100 2.288 2773 3.252 in ann NIMAT 2:436 2.700 2.826 3:185 3.278 3.759 3.803 4.435 **** PAKE 20% 1.200 1.440 1.728 2.074 2.488 2.986 3.583 4.300 5.160 - X va period o Period 9 Period 10 Period 11 Period 12 Period 13 Period 14 Period 15 Period 20 Period 25 Period 30 Period 40 1:083 1.172 1:20/ 1:309 T417 1.384 1.001 2.144 2.470 2.803 3.210 3.759 1.094 1.195 1.305 1.423 1.551 1.689 1.999 2.358 2.773 3.252 3.803 4.435 1.105 1.219 1.344 1.480 1.629 1.791 2.159 2.594 3.106 3.707 4.411 5.234 1.116 1.243 1,384 1.539 1.710 1.898 1.127 1,268 1.426 1.601 1.796 2012 1.138 1.294 1.469 1.665 1.886 2.133 1.149 1.319 1.513. 1.732 1.980 2.261 1.161 1.346 1.558 1.801 2.079 2.397 1.220 1.486 1.806- 1.282 1.641 2.094 1.348 1.811 2427 1.489 2:208 3.262 2.191 2.653 3.207 2666 3.386 4.292 3.243 4322 5.743 4.801 7.040 10 286 4.300 5.160 6.192 2.332 2.853 3.479 4.226 5.117 6.176 2.518 3.138 3.896 4.818 5.936 7.288 2.720 3.452 4.363 5.492 6.886 8.599 2.937 3.797 4.887 6,261 7.988 10.147 3.172 4.177 5474 7.138 4.661 6.727 9.646 13.743 19.461 27.393 6.848 10.835 17.000 26.462 40.874 62.669 10.063 17.449 29.960 50.950 85.850 143.371 237.376 21.725 45.259 93.051 188.884 378.721 750.378 1.469.772 9.266 11.974 38 338 95.396 7.430 8.916 10.699 12,839 15.407 Requirements 1. What is the project's NPV? Is the investment attractive? Why or why not? 2. Assume the expansion has no residual value. What is the project's NPV? Is the investment still attractive? Why or why not? 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 $ 2,944,894 Is the investment attractive? Why? The expansion is an attractive project because its NPV is positive Requirement 2. Assume the expansion has no residual value. What is the project's NPV? is the investment still attractive? Why or why not? Calculate the project's NPV (Round your answer to the nearest whole dollar Use parentheses or a minus sign for a negative net present value) Cimilar Is the investment attractive? Why? The expansion is an attractive project because its NPV is positive Requirement 2. Assume the expansion has no residual value. What is the project's NPV? Is the investment still attractive? Why or why not? Calculate the project's 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 $ 2.005.694 is the investment attractive? Why? Without a residual value, the expansion is still attractive because of the project's positive NPV Assume that Bear Valley's managers developed the following estimates concerning a planned expansion to its Waterfall Park Lodge (all numbers assumed): Number of additional skiers per day. Average number of days per year that weather conditions allow skiing at Bear Valley... Useful life of expansion (in years). Average cash spent by each skier per day........ $ Average variable cost of serving each skier per day ...... **** $ 124 161 9 236 136 e 500.000 conditions allow skiing at Bear Valley.. Useful life of expansion (in years). Average cash spent by each skier per day... Average variable cost of serving each skier per day . $ Cost of expansion $ 8,500,000 14% Discount rate.. Assume that Bear 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 nine-year life. It has already calculated the average annual net cash inflow per year to be $1,996,400. MY ... .... **** ... 161 9 236 $ 136 Present Value of Annuity of $1 Periods 1% 2% 3% 4% 20% 5% 6% 8% 10% 12% 14% 16% 18% Period 1 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 1.970 1.942 1.913 1.886 1.859 1.833 1.783 1.736 1.690 1.647 1.605 1.566 1.528 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 3.902 3.808 3.717 3.630 3.546 3.465 3.312 3.170 3.037 2.914 2.798 2.690 4.853 4.713 4.580 4.452 4.329 4.212 3.993 3.791 3.605 3.433 3.274 3.127 5.795 5.601 5.417 5.242 5.076 4.917 4.623 4.355 4.111 3.889 6.728 6,472 6.280 6.002 5.786 5.582 5.206 4.868 4.564 4.288 7.652 7.325 7.020 6.733 6.463 6.210 5.747 5.335 4.968 4.639 8.162 7.786 7.435 7 108 6.802 6.247 5.759 5.328 4.946 8.983 8.530 8.111 7.722 7.360 3.685 3.498 3.326 4.039 3.812 3.605 4.344 4.078 3.837 8.566 4.303 4.031 4 607 6.710 6.145 5.650 5.216 4.833 9.471 4.494 4 192 Period 2 Period 3 Period 4 Period 5 Period 6 Period 7 Period 8 Period 9 Period 10 2.589 2.991 EVITOMT 0.720 U.TIZ 0:200 U.UUE U.TUU J.JUE V.ZUO 5.029 5.197 Period 8 7.652 7.325 7.020 6.733 6.463 6.210 Period 9 8.566 8.162 7.786 7.435 7.108 6.802 Period 10 9.471 8.983 8.530 8.111 7.722 7.360 Period 11 10.368 9.787 9.253 8.760 8.306 7.887 7.139 6.495 5.938 5.453 Period 12 11,255 10.575 9.954 9.385 8.863 8.384 7.536 6.814 6.194 5.660 Period 13 12.134 11.348 10.635 9.986 9.394 8.853 7.904 7.103 6.424 5.842 5.342 8.244 7.367 6.628 6.002 5.468 8.559 7.606 6.811 6.142 5.575 16.351 14.877 13.590 12.462 11.470 9.818 8.514 7.469 6.623 5.929 19.523 17.413 15.622 14.094 12.783 10.675 9.077 7.843 6.873 6.097 22.396 19.600 17.292 15.372 13.765 11.258 9.427 8,055 7.003 6.177 27.355 23.115 19.793 17.159 15.046 11.925 9.779 8.244 7.105 6.233 Period 14 13.004 Period 15 13.865 12 106 11.296 10.563 9.899 9.295 12.849 11.938 11.118 10 380 9.712 Period 20 18.046 Period 25 22.023 Period 30 25 808 Period 40 32 835 7.000 T.JUT T.LUU 1.000 0.012 0:000 4.078 3.837 5.747 5.335 4.968 4.639 4.344 6.247 5.759 5.328 4.946 4.607 4.303 6.710 6.145 5.650 5.216 4.833 4.494 4.192 4.031 4.656 4.793 4.910 5.008 5.092 5.353 5.467 5.517 4.327 4.439 4.533 4.611 4.675 4.870 4.948 4.979 5.548 4.997 Present Value of $1 3% 4% Periods 1% 2% 5% 6% 8% 10% Period 1 0.990 0.980 0.971 0.962 0.952 0.943 0.926 0.909 Period 2 Period 3 Period 4 Period 5 Period 6 Period 7 Period 8 Period 9 Period 10 0.718 0.694 0.641 0.609 0.579 12% 14% 16% 18% 0.893 0.877 0.862 0.847 0.980 0.961 0.943 0.925 0.907 0.890 0.857 0.826 0.797 0.769 0.743 0.971 0,942 0.915 0.889 0.864 0.840 0.794 0.751 0.712 0.675 0.961 0.924 0.888 0.855 0.823 0.792 0.735 0.683 0.636 0.592 0.951 0.906 0.863 0.822 0.784 0.747 0.681 0.621 0.705 0.630 0.564 0.665 0.583 0.513 0.731 0.677 0.627 0.540 0.467 0.703 0.645 0.592 0.500 0.424 0.676 0.614 0.558 0.463 0.386 0.552 0.516 0.482 0.476 0.437 0.402 0.567 0.519 0.942 0.888 0.837 0.790 0.746 0.933 0,871 0.813 0.760 0.711 0.923 0.853 0.789 0.914 0.837 0.766 0.905 0.820 0.744 0.507 0.456 0.452 0.400 0.354 0.335 0.314 0.279 0.404 0.351 0.305 0.266 0.233 0.361 0.308 0.263 0.225 0.194 0.322 0.270 0.227 0.191 0.162 20% 0.833 0.410 0.370 0.351 0.305 0.266 Period 8 0.923 0.853 0.789 0.731 0.233 0.677 0.627 0.540 0.467 0.404 Period 9 0.914 0.837 0.766 0.703 0.645 0.592 0.500 0.424 0.361 0.308 0.263 0.225 0.194 Period 10 0.905 0.820 0.744 0.676 0.614 0.558 0.322 0.270 0.227 0.191 0.162 0.195 0.162 0.168 0.137 0.896 0.887 0.463 0.386 0.804 0.722 0.650 0.585 0.527 0.429 0.350 0,287 0.237 0.788 0.701 0.625 0.557 0.497 0.397 0.319 0.257 0.208 0.879 0.773 0.681 0.601 0.530 0.469 0.368 0.290 0.870 0.758 0.661 0.577 0.505 0.442 0.340 0.263 0.861 0.743 0.642 0.555 0.481 0.417 0.315 0.229 0.182 0.145 0.116 0.205 0.160 0.125 0.099 0.239 0.183 0.140 0.108 0.084 Period 11 Period 12 Period 13 Period 14 Period 15 Period 20 0.820 0.673 0554 0.456 0.377 0.312 0.215 0.149 0.104 0.073 0.051 0.037 Period 25 0.780 0.610 0.478 0.375 0.295 0.233 0.146 0.092 0.059 0.038 0.024 0.016 Period 30 0.742 0.552 0412 0.308 0.231 0.174 0.099 0.057 0.033 0.020 0.012 0.007 Period 40 0.672 0.453 0.307 0.208 0.142 0.097 0.046 10.022 0.011 0.005 0.003 0.001 0.135 0.112 0.093 0.078 0.065 0.026 0.010 0.004 0.001 Reference Periods 1% 2% Period 1 1.000 1.000 Period 2 Period 3 Period 4 Period 5 Future Value of Annuity of $1 3% 12% 1.000 6% 8% 10% 1.000 1.000 1.000 1.000 2010 2.020 2.030 2.040 2.050 2.060 2080 2.100 2.120 3.030 3.060 3.091 3.122 3.153 3.184 3.246 3.310 3.374 4.060 4.375 4.506 4.641 4.779 5.101 4.122 4.184 4.246 4.310 5.204 5.309 5416 5.526 5.637 5.867 6.105 6.353 Period 6 Period 7 Period 8. Period 9 6.152 6.308 6 468 7.214 7.434 7682 8.286 8.583 9.389 9.755 APA 8.892 10.159 4% 5% 1.000 1.000 6.633 6.802 7-898 8.142 9.214 9.549 10.583 11.027 11.491 annah Anco aman 6.975 8.115 7.336 7.716 8.394 8.923 9.487 10.089 9.897 10.637 11.436 12.300 12:488 13.579 14 776 www. AY MAY $75 14% 16% 18% 1.000 1.000 1.000 2.140 2.160 2180 3.440 3.506 3.572 5.066 5.215 6.877 7.154 4.921 6.610 8.536 8.977 10.730 11.414 13.233 16.085 en any 14.240 17.519 Denne 9.442 12.142 15.327 19.086 PA 20% 1.000 2.200 3.640 5.368 7.442 9.930 12916 16.499 20.799 Reference Perioa o Period 9 Period 10 Period 11 Period 12 Period 13 Period 14 Period 15 0.200 0.003 0.892 214 9.369 9.755 10.159 10.583 10.462 10.950 11.464 12 006 Period 20 Period 25 Period 30 Period 40 11.567 12 169 12.683 13.412 13.809 14.680 14.947 15.974 16.097 17 293 22.019 28 243 24 297 32 030 26.870 36.459 8.549 11.027 12.578 34.785 40.568 47 575 48.886 60.402 75 401 2007 10.037 TE430 12.300 12.488 13.579 14.776 11.491 13.181 14.487 15.937 17.549 23.045 12.808 13.486 14 207 14.972 16.645 18.531 20.655 27.271 14.192 15.026 15.917 16.870 18.977 21.384 24.133 32.089 15.618 16.627 17.713 18 882 21.495 24.523 28.029 37.581 17.086 18.292 19.599 21.015 24 215 27.975 32.393 43 842 18.599 20.024 21.579 23.276 27 152 31.772 37.280 91.025 29 778 33.086 36 786 45.762 57.275 72 052 41.646 47.727 54.885 73.106 98.347 133.334 181.871 56.085 66.439 79.058 113 283 164 494 241.333 356.787 95.026 120.800 154 762 259 057 442 593 767 0911 342 025 13.233 14.240 15.027 16.085 17.519 19.086 19.337 10.499 20.799 21.321 23.521 25.959 25.733 28.755 30.850 34.931 36.786 42.219 43.672 50.818 51.660 60.965 32.150 39.581 48.497 59.196 72.035 186.688 115.380 249.214 530,312 146.628 342.603 471.981 790.948 1,181.882 2.360.757 4.163.213 7.343 858 4 Reference Future Value of $1 Periods 1% 2% 3% 4% 5% 6% Period 1 1.010 1.020 1.030 1.040 1.050 1.060 1.020 1.030 1.041 1.051 1,082 1.072 1.149 1.083 8% 10% 12% 1.080 1.100 1.120 1.140 1.040 1.061 1.082 1.103 1.124 1.166 1.210 1.254 -1.300 1.061 1,093 1.125 1.158 1.191 1.260 1:331 1.082 1.126 1.170 1.216 1.262 1.360 1:464 1.574 1.104 1.159 1.217 1.276 1.338 1.469 1.611 1.762 1.265 1:340 1419 1.587 1.772 1.974 1.316 1.407 1.504 1714 1.949 2211 1.369 1.477 1.594 1.851 2.144 1.999 2:358 684 1.126 1.194 2.195 2.502 1.230 1172 1.267 2476 2.853 1.094 1.195 1.305 1.423 1,551 1.689 15.45 **** (40) AARA hann Period 2 Period 3 Period 4. Period 5 Period 6 Period 7 Period 8 Period 9 14% 16% 18% 1.160 1.180 1.346 1.392 1.405 1.482 1.561 1.643 1.689 1.811 1.939 1.925 2.100 2.288 2773 3.252 in ann NIMAT 2:436 2.700 2.826 3:185 3.278 3.759 3.803 4.435 **** PAKE 20% 1.200 1.440 1.728 2.074 2.488 2.986 3.583 4.300 5.160 - X va period o Period 9 Period 10 Period 11 Period 12 Period 13 Period 14 Period 15 Period 20 Period 25 Period 30 Period 40 1:083 1.172 1:20/ 1:309 T417 1.384 1.001 2.144 2.470 2.803 3.210 3.759 1.094 1.195 1.305 1.423 1.551 1.689 1.999 2.358 2.773 3.252 3.803 4.435 1.105 1.219 1.344 1.480 1.629 1.791 2.159 2.594 3.106 3.707 4.411 5.234 1.116 1.243 1,384 1.539 1.710 1.898 1.127 1,268 1.426 1.601 1.796 2012 1.138 1.294 1.469 1.665 1.886 2.133 1.149 1.319 1.513. 1.732 1.980 2.261 1.161 1.346 1.558 1.801 2.079 2.397 1.220 1.486 1.806- 1.282 1.641 2.094 1.348 1.811 2427 1.489 2:208 3.262 2.191 2.653 3.207 2666 3.386 4.292 3.243 4322 5.743 4.801 7.040 10 286 4.300 5.160 6.192 2.332 2.853 3.479 4.226 5.117 6.176 2.518 3.138 3.896 4.818 5.936 7.288 2.720 3.452 4.363 5.492 6.886 8.599 2.937 3.797 4.887 6,261 7.988 10.147 3.172 4.177 5474 7.138 4.661 6.727 9.646 13.743 19.461 27.393 6.848 10.835 17.000 26.462 40.874 62.669 10.063 17.449 29.960 50.950 85.850 143.371 237.376 21.725 45.259 93.051 188.884 378.721 750.378 1.469.772 9.266 11.974 38 338 95.396 7.430 8.916 10.699 12,839 15.407 Requirements 1. What is the project's NPV? Is the investment attractive? Why or why not? 2. Assume the expansion has no residual value. What is the project's NPV? Is the investment still attractive? Why or why not?

Answer rating: 100% (QA)

Solution 1 Computation of NPV Clare Valley Particulars Period Amount PV factor ... View the full answer