Help with Responsibility Centers and Financial Controls? (Managerial Accounting)

Deliverable length is 1 page and 1 excel spreadsheet

Consider the following scenario:

Deer Valley Lodge, a ski resort in the Wasatch Mountains of Utah, has plans to eventually add five new chairlifts. Suppose that one lift costs $2 million, and preparing the slope and installing the lift costs another $1.3 million. The lift will allow 300 additional skiers on the slopes, but there are only 40 days a year when the extra capacity will be needed. (Assume that Deer Valley Lodge will sell all 300 lift tickets on those 40 days.) Running the new lift will cost $500 a day for the entire 200 days the lodge is open. Assume that the lift tickets at Deer Valley cost $55 a day. The new lift has an economic life of 20 years.

1. Assume that the before-tax      required rate of return for Deer Valley is 14%. Compute the before-tax NPV      of the new lift and advise the managers of Deer Valley about whether      adding the lift will be a profitable investment. Show calculations to      support your answer. 
2. Assume that the after-tax required      rate of return for Deer Valley is 8%, the income tax rate is 40%, and the      MACRS recovery period is 10 years. Compute the after-tax NPV of the new      lift and advise the managers of Deer Valley about whether adding the lift      will be a profitable investment. Show calculations to support your answer.      
3. What subjective factors would      affect the investment decision? 

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