Capital Budgeting Assignment

Consider how Jones Valey Spring Park Lodge could use capital budgeting to decide whether the $13.800.000 Spring Park Lodge expansion would be a good investment M ume Jones Valley's managers developed the following estimates concerning the expansion 1 Click the icon to view the estimates.) Click the icon to view additional information.) Click the icon to view Present Value of $1 table) Click the icon to view Present Value of Ordinary Annuity of $1 table) What is the project's NPV round to newest dollar is the investment attractive? Why or why not? Calculate the nel procent value of the expansion (Enter any factor amounts to three decimal places, XXX Round to the nearest whole dolar.)

Net Cash Annuity PV Factor (12% ) PV Factor (12% ) Inflow 1.8 Data Table Present value of any Present value of residual value Total PV of cash now Initial investment Not present value of expansion Number of additional ers per day Average number of days per year that weather conditions allowing at Jones Valley Us e of expansion in years) Average cash pent by each ser per day Average variable cost of serving each sker per day The expansion is an attractive project because it is positive 13.500.000 Discount rate Enter any number in the st a nd then continue to the next Question erence Reference 6 % 3 4 % 9 0.90 0.00 0971 02 0 0460 461 03 05 0.971 0192 0.95 0589 Present of 7% 8% 10% 12% 14% 05 0908 0.917 OSOB 0883 0877 0373 370 M200 5 3 02 53 Present Value of Ordinary Any of 51 0 % 7 h 145 155 165 175 05 06 07 08 OTT O M 1800 1808 174 1750 1.738 166 167 168 169 2.693 2604 257 2.591 2.487 2402 2.2 2280 2.4 2.1 3485 337 3312 1.3 17 3007 21 2165 276 2.680 1.212 4100 3.00 3 10 10 10 17 O NA 1950 9950 0.822 0.784 ass 2 0.813 RRRRRRRRRRRRRRRRR99 12.90 1.38 10.635 12.106 11.296 10.5639.90 23: 6105N 46 11.652083800 1514212862 10.07 SEPPER 0 3.3 17236 15 14 04 18.04 1631. 13 114 13. 12085 1 20 50 6.250 5.0 5.380 4 ST 0.00 0.542 0.003 004 02 0422 0634 02 606 2 BE 19.060 1761 14 4513 or Me 20 . 20518234 13120 91272580 21.1 1 5. 137 .50 1110 22.01.23 174131562140 2 229 2 17. 15 0 13. 0 250 200 18 1630 46 137 138 1 241 21381741 14.50 105 25211 15111111101.370 SU 5 4 4 01 0.14 0.450 0.20 03 0.67 0.333 0255 06 0.53 004 021 0.343 0.185 We were unable to transcribe this image. Get Accounting homework help today