- Consider How Clare Valley A Popular Ski Resort Could Use Capital Budgeting To Decide Whether The 9 5 Million Spring P 1 (15.26 KiB) Viewed 11 times
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- Consider How Clare Valley A Popular Ski Resort Could Use Capital Budgeting To Decide Whether The 9 5 Million Spring P 3 (75.09 KiB) Viewed 11 times
- Consider How Clare Valley A Popular Ski Resort Could Use Capital Budgeting To Decide Whether The 9 5 Million Spring P 4 (80.04 KiB) Viewed 11 times
- Consider How Clare Valley A Popular Ski Resort Could Use Capital Budgeting To Decide Whether The 9 5 Million Spring P 5 (68.6 KiB) Viewed 11 times
- Consider How Clare Valley A Popular Ski Resort Could Use Capital Budgeting To Decide Whether The 9 5 Million Spring P 6 (70.98 KiB) Viewed 11 times
- Consider How Clare Valley A Popular Ski Resort Could Use Capital Budgeting To Decide Whether The 9 5 Million Spring P 7 (60.56 KiB) Viewed 11 times
- Consider How Clare Valley A Popular Ski Resort Could Use Capital Budgeting To Decide Whether The 9 5 Million Spring P 8 (58.11 KiB) Viewed 11 times
- Consider How Clare Valley A Popular Ski Resort Could Use Capital Budgeting To Decide Whether The 9 5 Million Spring P 9 (59.77 KiB) Viewed 11 times
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- Consider How Clare Valley A Popular Ski Resort Could Use Capital Budgeting To Decide Whether The 9 5 Million Spring P 11 (22.01 KiB) Viewed 11 times
get ve? to Data table Assume that Clare Valley's managers developed the following estimates concerning a planned expansion to its Spring Park Lodge (all numbers assumed): Number of additional skiers per day.... Average number of days per year that weather conditions allow skiing at Clare 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.. $ ..... ..... Print Discount rate. Assume that Clare Valley uses the straight-line depreciation method and expects the lodge expansion to have a residual value of $750,000 at the end of its nine-year life. It has already calculated the average annual net cash inflow per year to be $2,135,280. Done - 124 164 9 237 132 9,500,000 14% X 1€
Present Value of Annuity of $1 4% 5% 6% 20% Period 4 Periods 1% 2% 3% 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 Period 2 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 Period 3 2.941 2.884 2.829 2.775 2.723 2.673 2577 2487 2.402 2.322 2.246 2174 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 2.589 4.853 4.713 4.580 4.452 4 329 4 212 3.993 3.791 3.605 3.433 3.274 3.127 2.991 5.076 4.917 4.623 4.355 4.111 5.786 5.582 5.206 4.868 4.564 6.463 6210 5.747 5.335 4.968 4.639 7.108 6.802 6 247 5 759 5.328 4 946 7.722 7.360 6.710 6.145 5.650 5216 Period 5 3.889 3.685 3.498 4.288 4.039 3.812 4.344 4.078 4.607 4.303 4.833 4.494 Period 6 Period 7 Period 8 Period 9 Period 10 5.601 5.417 5.242 6.472 6.230 6.002 7.325 7.020 6 733 8.162 7.786 7.435 8.983 8.530 8.111 9.787 9.253 8.760 10.575 9.954 9 385 11 348 10.635 9.986 Period 11 10.368 8.306 7.887 7.139 6.495 5.938 5.453 5.029 +656 4.327 Period 12 11.255 8 863 8.384 7.536 6.814 6.194 5.660 5.197-793 Period 13 12 134 9.394 8.853 7.904 7.103 6.424 5 842 5.342 4.910 Period 14 13.004 12 106 11 296 10.563 9.899 9.295 8.244 7.367 6.628 6.002 5.468 5.008 Period 15 13.865 12.849 11.938 11.118 10 380 9.712 8 559 4.439 4.533 4.611 7 606 6.811 6.142 5.575 5.092 4.675 5.795 6.728 7.652 8.566 9.471 Period 20 18.046 16.351 14.877 13.590 12.462 11 470 Period 25 22.023 19.523 17 413 15.622 14.094 12.783 9.818 8.514 10.675 9.077 6.623 5.929 7.469 7.843 6.873 6.097 5.353 5.467 3.326 3.605 3.837 4.031 4.192 4.870 4.948
THOUG Period 1 Period 2 Period 3 Period 4 Period 5 1-70 0.990 1.970 2.941 3.902 4.853 470 70 VI UZU TUN 070 TUTU EVI 17/9 1979 0.877 0.862 0.847 0.833 0.980 0.971 0.962 0.952 0.943 0.926 0.909 0.893 1.942 1.913 1.886 1.859 1.833 1.783 1.736 1.690 1.647 1.605 1.566 1.528 2.884 2.829 2.775 2.723 2.673 2.577 2.487 2.402 2.322 2.246 2.174 2.106 3.808 3.717 3.630 3.546 3.465 3.312 3.170 3.037 2.914 2.798 2.690 2.589 4.713 4.580 4.452 4.329 4.212 3.993 3.791 3.605 3.433 3.274 3.127 2.991 UTU TK 79 Period 6 5.795 Period 7 6.728 Period 8 Period 9 Period 10 4.192 5.601 5.417 5.242 5.076 4.917 4.623 4.355 4.111 3.889 3.685 3.498 3.326 6.472 6.230 6.002 5.786 5.582 5.206 4.868 4.564 4.288 4.039 3.812 3.605 7.652 7.325 7.020 6.733 6.463 6.210 5.747 5.335 4.968 4.639 4.344 4.078 3.837 8.566 8.162 7.786 7.435 7.108 6.802 6.247 5.759 5.328 4.946 4.607 4.303 4.031 9.471 8.983 8.530 8.111 7.722 7.360 6.710 6.145 5.650 5.216 4.833 4.494 Period 11 10.368 9.787 9.253 8.760 8.306 7.887 7.139 6.495 5.938 Period 12 11.255 10.575 9.954 9.385 8.863 8.384 7.536 6.814 6.194 Period 13 12 134 11.348 10.635 9.986 9.394 8.853 7.904 7.103 6.424 Period 14 13.004 12 106 11.296 10.563 9.899 9.295 8.244 7.367 6.628 Period 15 13.865 12.849 11.938 11.118 10.380 9.712 8.559 7 606 6.811 6.142 5.453 5.660 5.842 5.342 5.029 4.656 5.197 4.793 4.910 6.002 5.468 5.008 5.575 4611 5.092 4.675 4.327 4.439 4.533 5.929 5.353 6 097 5.467 Period 20 18.046 16.351 14.877 13.590 12.462 11.470 9 818 8.514 7.469 6.623 Period 25 22 023 19.523 17.413 15.622 14.094 12.783 10.675 9.077 7.843 6.873 Period 30 25.808 22.396 19.600 17.292 15.372 13.765 11.258 9.427 8.055 7.003 6.177 Period 40 32.835 27.355 23 115 19.793 17 159 15.046 11.925 9.779 8 244 7.105 6.233 5.548 5.517 4.870 4.948 4.979 4.997
Periods 1% Period 1 Period 2 Period 3 Period 4 Period 5 Present Value of $1 4% 6% 8% 0.980 0.961 2% 3% 5% 10% 12% 14% 16% 18% 20% 0.990 0.980 0.971 0.962 0,952 0.943 0.926 0.909 0.893 0.877 0.862 0.847 0.83 0.890 0.857 0.826 0.797 0.769 0 743 0.718 0.65 0.840 0.794 0.751 0.712 0.675 0.641 0.683 0 636 0.592 0.552 0.516 0.48 0.519 0476 0.437 0.40 0.971 0.609 0.57 0.942 0.961 0.924 0.943 0.925 0,907 0.915 0.889 0.864 0.888 0.855 0.823 0.792 0.735 0.906 0.863 0.822 0.784 0.747 0.681 0.621 0.567 0.951 Period 6 Period 7 Period 8 Period 9 Period 10 0.942 0.888 0.837 0.790 0.746 0.705 0.630 0.564 0.507 0.456 0.410 0.370 033 0.933 0.871 0.813 0.760 0.711 0.665 0.583 0.513 0.452 0.400 0.354 0.314 0.27 0.789 0.731 0.677 0.627 0.540 0467 0.404 0.351 0305 0.266 0.23 0.361 0.308 0.263 0.225 0.19 0.322 0.270 0.227 0.191 0.16 0.923 0.853 0.914 0.837 0.905 0.820 Period 11 Period 12 Period 13 Period 14 0.870 Period 15 0.861 Period 20 0.820 Period 25 0.780 0.766 0.744 0.673 0.610 0.703 0.676 0.896 0.804 0.722 0,887 0.879 0.773 0.650 0.585 0.527 0.429 0.350 0.287 0.237 0.195 0.162 0.13 0.788 0.701 0.625 0.557 0.497 0.397 0.319 0.257 0208 0.168 0.137 0.11 0.681 0.601 0.530 0.469 0.368 0.290 0.229 0.182 0.145 0.116 0.09 0.661 0.577 0.505 0.442 0.340 0.263 0.205 0 160 0125 0.099 0.07 0.642 0.555 0.481 0417 0315 0239 0.183 0,140 0.108 0.084 0.06 0.554 0.456 0.377 0.312 0215 0.149 0.478 0.375 0.295 0.233 0.146 0.092 0.758 0.743 0.645 0.592 0.614 0.558 0.500 0.424 0.463 0.386 0.104 0.073 0.051 0037 0.03 0.059 0.038 0.024 0.016 0.01
TUTVU Period 1 Period 2 Period 3 Period 4 Period 5 Period 6 Period 7 Period 8 Period 9 Period 10 Period 11 Period 12 Period 13 Period 14 Period 15 X7V LIV Vn TIV 079 0.990 0.980 0.971 0.962 0.952 0.980 0.961 0.943 0.925 0.907 0.971 0.942 0.915 0.889 0.864 0.961 0.924 0.888 0.855 0.794 0.751 0.823 0.735 0.683 0.951 0.906 0.863 0.822 0.784 0.747 0.681 0.621 Period 20 0.820 Period 25 0.780 Period 30 0.742 Period 40 0.672 0.942 0.888 0.837 0.790 0.746 0.705 0.630 0.564 0.507 0.933 0.871 0.813 0.760 0.711 0.665 0.583 0.513 0.452 0.400 0.923 0.853 0.789 0.731 0677 0.627 0.540 0.467 0.404 0.351 0.914 0.837 0.766 0.703 0645 0592 0.500 0.424 0.361 0.308 0.905 0.820 0.744 0.676 0.614 0.558 0.463 0.386 0.322 0.270 0.896 0.804 0.722 0.650 0.585 0.527 0.429 0.350 0.287 0.887 0.788 0.701 0.625 0557 0.497 0.397 0.319 0 257 0.879 0.773 0.681 0.601 0.530 0469 0.368 0.290 0.229 0.505 0.442 0340 0.263 0,205 0.481 0417 0.315 0239 0.183 0.870 0.661 0.577 0.758 0.861 0.743 0.642 0.555 0.673 0.554 0.610 0.478 0.552 0.412 0453 VIV TUR TEN ITW TUT TUT EV 0.926 0.909 0.893 0.877 0.862 0.847 0.83 0.826 0.797 0.743 0718 0.69 0.769 0.675 0.641 0.609 0.57 0.712 0.636 0.592 0.552 0.516 0.48 0.567 0.519 0.476 0.437 0.40 VI 0.943 0.890 0.857 0.840 0.792 0.307 0.208 0.456 0.377 0.312 0.215 0.375 0.295 0.233 0.308 0.231 0.174 0.142 0.097 0.149 0146 0.092 0.099 0.057 0046 0022 0.456 0.410 0.370 0.33 0.354 0.314 027 0.305 0.266 0.23 0 263 0.225 0.19 0.227 0.191 0.16 0.237 0.195 0.162 0.13 0.208 0.168 0.137 0.11 0 145 0.116 0.09 0.07 0.182 0.160 0.125 0.099 0 140 0.108 0.084 0.06 500 0.104 0.073 0.051 0.037 0.02 0.038 0.024 0.016 0.01 0 059 0.033 0.020 0.011 0.005 0.012 0.007 0.00 0.003 0.001 0.00
Periods 1% Period 1 Period 2 Period 3 Period 4 Period 5 Period 6 Period 7 Period 8 Period 9 Period 10 Period 11 Period 12 Period 13 Period 14 Period 15 4% 5% 1.000 1.000 2% 3% 1.000 1.000 2.030 2040 2.050 1.000 2010 2020 3.030 3.060 3.091 3.122 3.153 4.060 4.122 4.184 4246 4.310 5.204 5.101 6.152 6 308 7.214 7.434 6.468 7.662 8.583 8.892 9.755 10 159 10.583 11.464 12.006 8 286 9.369 10.462 10.950 1.000 2.060 3.184 4,375 5.309 5.416 5,526 5.637 11.567 12 169 12 808 12.683 13.412 14 192 13.809 14.680 15.618 14.947 15.974 17.086 16.097 17.293 Period 20 22.019 24 297 Period 25 28 243 32.030 Future Value of Annuity of $1 6% 8% 10% 12% 1.000 1.000 1.000 2.080 2100 2120 3.310 3.374 6.633 6.802 6.975 7.898 8.142 8.394 9214 9549 9.897 11.027 11 491 12.578 13.181 14.207 14.972 13 486 15.026 15.917 16.627 17 713 18.292 19.599 21.015 18 599 20.024 21.579 23 276 8 26.870 29.778 33 066 36.459 41.646 47 727 16 870 18 882 36 786 54 865 3.246 4.506 5.867 4.641 4.779 6.105 6.353 7.336 7.716 8.115 8.923 9.487 10.089 10.637 11.436 12.300 12 488 13.579 14.776 14.487 15 937 17 549 16.645 18.531 18.977 21 384 21.495 24,523 27 975 31.772 24 215 27 152 20,655 24 133 28.029 32 393 37 280 45.762 57 275 72.052 73 106 98 347 133 334 14% 1.000 2.140 3.440 3.506 4.921 6.610 8,536 8.977 9442 12.142 10.730 11.414 13.233 16 085 14 240 15.327 19.337 23.045 27 271 32.089 16% 18% 1.000 1.000 2160 2180 3572 5.066 5215 6.877 7.154 37.581 43 842 91,025 181871 17.519 21,321 25,733 30 850 36 786 43.672 51.660 115 380 249 214 19 086 23.521 28 755 34 931 42.219 50.818 60 965 146.628 342.603 20% 1.000 2200 3.640 5,368 7,442 9.930 12.916 16.499 20 799 25 959 32 150 39 681 48 497 59.196 72,035 186.688 471 981
THIVA Period 1 Period 2 Period 3 Period 4 Period 5 Period 6 Period 7 Period 8 Period 9. Period 10 Period 11 Period 12 Period 13 Period 14 Period 15 Period 20 Period 25 Period 30 Period 40 179 LTV www THV VIV 1.000 1.000 1.000 1.000 2010 1.000 2020 2030 2040 2.050 3.060 3.091 3.122 3.153 3.030 4.060 4.122 4.184 4.246 4.310 4.375 5.101 5.204 5.309 5.416 5.526 5.637 6.152 6.308 6.468 6.633 6.802 7.214 7.434 7.662 7.898 8.142 8.394 6.975 8.286 9.369 10.462 10.950 11.567 12.169 12.808 13.486 12.683 13.412 14 192 15.026 13.809 14.680 15.618 16.627 14.947 15.974 17.086 16.097 17 293 18 599 22.019 28.243 7.716 8.115 8.536 10.089 10.730 9.755 10.159 23.045 7.336 8.923 9.487 8.583 8.892 9.214 9.549 9.897 10 637 11.436 12.300 13.233 10 583 11.027 11.491 12488 13.579 14.776 16.085 11.464 12.006 12.578 13.181 14.487 15.937 17.549 19.337 14.207 14,972 16 645 18 531 20 655 15.917 16 870 18.977 21.384 24.133 27 271 21.495 24.523 28.029 32 089 21.015 24.215 27.975 32.393 37.581 23.276 27 152 31.772 37.280 43.842 33.066 36.786 45.762 57 275 72.052 91.025 47.727 54 865 73.106 98.347 133.334 181.871 66 439 79.058 113.283 164 494 241 333 356.787 120 800 154 762 259.057 442 593 767 091 1,342 025 17.713 18.882 19,599 21.579 24 297 32 030 26 870 36 459 47 575 34.785 40.568 48.886 60 402 75.401 18 292 20 024 ww TUTV TKTV 1.000 1.000 1.000 2.060 1.000 2.080 2.100 2120 3.184 3.246 3.310 3.374 3.440 4.506 4.641 4.779 4.921 5.867 6.105 6.353 29.778 41 646 56.085 95.026 ITIV 1.000 2140 TVW 1.000 2160 3.506 5.066 6.610 6.877 8.977 9.442 11.414 12.142 14.240 15.327 17.519 21.321 25.733 30.850 36 786 TWWW 1.000 2180 3.572 5215 7.154 43.672 51 660 19.086 23.521 28.755 34.931 42219 50.818 60,965 AVIV 1.000 2.200 3.640 5.368 7.442 9.930 12.916 16.499 20.799 25 969 32.150 39.581 48.497 59.196 72.035 146.628 186 688 115.380 249 214 530312 342 603 471.981 790 948 1,181.883 2,360 757 4,163 213 7,343.85
Periods 1% Period 1 Period 2 Period 3 Period 4 Period 5 Period 6 Period 7 Period 8 Period 9 Period 10 Period 11 Period 12 Period 13 Period 14 Period 15 4% 5% 2% 3% 1.010 1.020 1.030 1.040 1.050 1.020 1.040 1.061 1.082 1.103 1.030 1.061 1.093 1.125 1.041 1.082 1.126 1.170 1.158 1.216 1.051 1.104 1.159 1.217 1.276 Period 20 Period 25 1.126 1.194 1.265 1.340 1.149 1.230 1.316 1.407 1.172 1.267 1.094 1.195 1.305 1.105 1.219 1.344 1.062 1.072 1.083 1.369 1.477 1.423 1.480 1.220 1.486 1.282 1.641 Future Value of $1 6% 8% 12% 1:120 10% 1.060 1.080 1.100 1.166 1.260 1.331 1.405 1.210 1.254 1.124 1.191 1,262 1.360 1.464 1.574 1.806 2.191 2.094 2.666 1.338 1.469 1.611 1.762 1.925 1.772 1.974 2.195 1.949 2211 2.502 1.419 1.587 1.504 1.714 2.436 2.700 2.826 3.185 1.594 1.851 2.144 2.476 2.853 3.278 3.759 1.999 2.358 2.773 3.252 3.803 4.435 2.159 2.594 3.106 3.707 4.411 5.234 14% 16% 1.140 1.160 1.300 1.346 1.482 1.561 1.689 1.811 18% 1.180 1,392 1.643 1.939 2.100 2.288 2.653 3.207 3.386 4 292 4.661 6.727 6.848 1.551 1.689 1.116 1.243 1.384 5.117 6.176 7.430 1.127 1.629 1.791 1.539 1.710 1.898 2.332 2.853 3.479 4.226 1.601 1.796 2012 2.518 3.138 3.896 4.818. 5.936 7.288 1.294 1.469 1.665 1.886 2.133 2.720 3.452 4.363 5.492 6.886 1.149 1.319 1.513 1.732 1.980 2261 2.937 3.797 4.887 6.261 7.988 1.346 2.079 2.397 3.172 4.177 5.474 7.138 9.266 11.974 1.268 1.426 8.916 1.138 8.599 10.699 10.147 12.839 1.161 1.558 1.801 15.407 9.646 13.743 19.461 27.393 10.835 17.000 26.462 40 874 62.669 20% 1.200 1.440 1.728 2.074 2.488 2.986 3.583 4.300 5.160 6.192 38.338 95.396
TONDUS Period 1 Period 2 Period 3 Period 4 Period 5 Period 6 Period 7 Period 8 Period 9 Period 10 Period 11 Period 12 Period 13 Period 14 Period 15 Period 20 Period 25 Period 30 Period 40 170 970 UN F 1.010 1.040 1.050 1.060 1.080 1.020 1.040 1.082 1.103 1:124 1.166 1.030 1.061 1.093 1.125 1.158 1.191 1.041 1.082 1.126 1.170 1.216 1.262 1.051 1.104 1.159 1.217 1.276 1.338 270 370 1.020 1.030 1.061 1.062 1.126 1.194 1.265 1.072 1.149 1.230 1.316 1.083 1.172 1.267 1.369 1.094 1.195 1.305 1.423 1.219 1.344 1.480 1.105 1.116 1243 1.384 1.539 1.127 1268 1.426 1.601 1.138 1.294 1.469 1.665 1.149 1.319 1.732 1.161 1.346 1.801 1.220 1.486 1.282 1.641 1.513 1.558 1.806 2.094 2427 2.208 3.262 1.348 1.811 1.489 2.191 2.666 3.243 4.801 1.340 1.419 1.407 1.504 1.477 1.594 1.551 1.689 1.629 1.791 TVN 1.100 1.210 1.260 1.331 1.360 1.464 1.469 1.611 2.653 3.207 3.386 4.292 4.322 5743 7.040 1.587 1.772 1.714 1.949 1.851 2.144 1.999 2.358 2.159 2.594 1.710 1.898 1.796 2012 2.518 1.886 2.133 2.720 1.980 2.261 2.937 2.079 2.397 3.172 2.332 2.853 TEN 1979 TUN TUN 1.120 1.140 1.160 1.180 1.254 1.300 1.346 1.392 1.405 1.482 1.561 1.643 1.574 1.689 1.811 1.939 1.762 1.925 2.100 2.288 1.974 2.211 2476 2.773 3.106 3.707 4.411 5.234 2.195 2.436 2.700 2.502 2.826 3.185 2.853 3.278 3.759 3.252 3.803 4.435 3.479 4.226 5.117 6.176 4.818 5.936 7.288 5.492 6.886 8.599 6.261 7.988 10.147 7.138 9.266 11.974 3.138 3.896 3.452 4.363 3.797 4.887 4.177 5.474 LUA 1.200 1.440 1.728 2.074 2488 2.986 3.583 4.300 5.160 6.192 7.430 8.916 10.699 12.839 15.407 38.338 4.661 6.727 9.646 13.743 19.461 27.393 6.848 10.835 17.000 26 462 40 874 62 669 95,396 10.063 17 449 29.960 50 950 85.850 143.371 237 376 10.286 21.725 45.259 93.051 188.884 378.721 750.378 1,469.77
ad SV 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? X