Consider how Rouse Valley Brook Park Lodge could use capital budgeting to decide whether the
$ Brook Park Lodge expansion would be a good investment. Assume Rouse Valley's
managers developed the following estimates concerning the expansion:
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Click the icon to view Present Value of $ table.
Click the icon to view Present Value of Ordinary Annuity of $ table.
What is the project's NPV round to nearest dollar Is the investment attractive? Why or
why not?
Calculate the net present value of the expansion. Enter any factor amounts to three decimal places,
XXXX Round to the nearest whole dollar.
Data table
More info
Assume that Rouse Valley uses the straightline depreciation method and expects
the lodge expansion to have a residual value of $ at the end of its
sevenyear life. They have already calculated the average annual net cash inflow
per year to be $
