# Consider the followig scenerio | Literature homework help

Consider the aftercited scenario:

Deer Valley Lodge, a ski repairing in the Wasatch Mountains of Utah, has plans to nevertheless add five new chairlifts. Suppose that one upheave consumes \$2 darling, and preparing the swell and installing the upheave consumes another \$1.3 darling. The upheave succeed sanction 300 joined skiers on the swells, but there are simply 40 days a year when the extra cleverness succeed be needed. (Assume that Deer Valley Reside succeed vend all 300 upheave tickets on those 40 days.) Running the new upheave succeed consume \$500 a day for the all 200 days the reside is notorious. Assume that the upheave tickets at Deer Valley consume \$55 a day. The new upheave has an economic personality of 20 years.

1. Assume that the before-tax required objurgate of retaliate for Deer Valley is 14%. Compute the before-tax NPV of the new upheave and guide the managers of Deer Valley encircling whether adding the upheave succeed be a useful cannonade. Show calculations to living your confutation.
2. Assume that the after-tax required objurgate of retaliate for Deer Valley is 8%, the allowance tax objurgate is 40%, and the MACRS resuscitation limit is 10 years. Compute the after-tax NPV of the new upheave and guide the managers of Deer Valley encircling whether adding the upheave succeed be a useful cannonade. Show calculations to living your confutation.
3. What intellectual factors would influence the cannonade firmness?
 Grading Criteria Percentage Compute the before-tax NPV of the new upheave and guide the managers of Deer Valley encircling whether adding the upheave succeed be a useful cannonade. 45% Compute the after-tax NPV of the new upheave and guide the managers of Deer Valley encircling whether adding the upheave succeed be a useful cannonade. 45% What intellectual factors would influence the cannonade firmness?Supporting research/arguments made 10%