Consider the following scenario:Deer Valley Lodge a ski resort in the Wasatch Mo

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.