2.85 polnts eElook Ask Print References Robertson Resorts is considering whether to expand its Pagosa Springs Lodge. The expansion will create 24 additional rooms for rent. The following estimates are available: Cost: of expansion $ 3,586,666 Discount rate 9% Useful life 26 Annual rental income $ 1,456,666 Annual operating expenses $ 1,866,666 Robertson uses straightline depreciation and the lodge expansion will have a residual value $360,000. Required: 1. Calculate the annual net operating income from the expansion. 2. Calculate the annual net cash inow from the expansion. 3. Calculate the ARR. 4. Note: Round your answer to 2 decimal places. Calculate the payback period. Note: Round your answer to 1 decimal place. 5. Calculate the NPV. [Future Value of $1,Present Value of$1, Future Value nnuit},r Of $1, Present Value Annuity of $1.) Note: Use appropriate factorls) from the tables provided. Do not round intermediate calculations. Round your final answer to nearest whole dollar amount. 1. Annual Operating Income 2. Annual Net Cash lnfl ow 4. Payback Period 5. NPV \fTABLE 11.2A Present Value of $1 Periods 2% 3% 3.75% 4% 4.25% 5% 6% 7% 8% 0.9804 0.9709 0.9639 0.9615 0. 9592 0.9524 0.9434 0.9346 0.9259 0. 9612 0. 9426 0.9290 0.9246 0. 9201 0.9070 0. 8900 0.8734 0. 8573 0.9423 0. 9151 0. 8954 0. 8890 0. 8826 0. 8638 0. 8396 0. 8163 0. 7938 0.9238 0. 8885 0. 8631 0. 8548 0. 8466 0.8227 0. 7921 0. 7629 0.7350 0.9057 0. 8626 0. 8319 0. 8219 0. 8121 0.7835 0.7473 0. 7130 0. 6806 0. 8880 0. 8375 0. 8018 0. 7903 0. 7790 0.7462 0. 7050 0. 6663 0. 6302 0. 8706 0. 8131 0. 7728 0. 7599 0. 7473 0. 7107 0. 6651 0. 6227 0. 5835 0. 8535 0. 7894 0. 7449 0. 7307 0. 7168 0. 6768 0. 6274 0. 5820 0. 5403 0. 8368 0. 7664 0. 7180 0. 7026 0. 6876 0. 6446 0. 5919 0.5439 0. 5002 10 0. 8203 0. 7441 0. 6920 0. 6756 0. 6595 0. 6139 0. 5584 0. 5083 0. 4632 20 0. 6730 0. 5537 0. 4789 0. 4564 0. 4350 0. 3769 0. 3118 0 . 2584 0. 2145 Periods 9% 10% 11% 12% 13% 14% 15% 20% 25% 0. 9174 0.9091 0.9009 0. 8929 0. 8850 0. 8772 0. 8696 0.8333 0. 8000 0. 8417 0. 8264 0. 8116 0. 7972 0. 7831 0. 7695 0. 7561 0. 6944 0. 6400 0. 7722 0. 7513 0. 7312 0. 7118 0. 6931 0. 6750 0. 6575 0. 5787 0. 5120 0. 7084 0. 6830 0. 6587 0. 6355 0. 6133 0. 5921 0. 5718 0. 4823 0. 4096 0. 6499 0. 6209 0. 5935 0. 5674 0. 5428 0. 5194 0. 4972 0. 4019 0. 3277 0.5963 0.5645 0.5346 0. 5066 0. 4803 0. 4556 0. 4323 0. 3349 0. 2621 0. 5470 0. 5132 0. 4817 0. 4523 0. 4251 0. 3996 0. 3759 0. 2791 0. 2097 0. 5019 0. 4665 0.4339 0. 4039 0. 3762 0. 3506 0. 3269 0. 2326 0. 1678 0. 4604 0. 4241 0. 3909 0. 3606 0. 3329 0. 3075 0. 2843 0. 1938 0. 1342 0. 4224 0. 3855 0. 3522 0. 3220 0. 2946 0. 2697 0. 2472 0. 1615 0. 1074 20 0. 1784 0. 1486 0. 1240 0. 1037 0. 0868 0. 0728 0. 0611 0. 0261 0. 0115TABLE 11.4A Present Value of Annuity of $1 Periods* 2% 3% 3.75% 4% 4. 25% 5% 6% 7% 8% 0.9804 0.9709 0.9639 0. 9615 0. 9592 0.9524 0.9434 0.9346 0.9259 1. 9416 1.9135 1. 8929 1. 8861 1. 8794 1. 8594 1.8334 1. 8080 1.7833 2.8839 2. 8286 2. 7883 2. 7751 2. 7620 2.7232 2.6730 2. 6243 2.5771 3.8077 3. 7171 3.6514 3.6299 3. 6086 3.5460 3.4651 3.3872 3. 3121 4. 7135 4.5797 4.4833 4. 4518 4. 4207 4.3295 4. 2124 4. 1002 3.9927 5. 6014 5 . 4172 5. 2851 5. 2421 5. 1997 5.0757 4.9173 4.7665 4.6229 6.4720 6. 2303 6. 0579 6. 0021 5.9470 5.7864 5.5824 5. 3893 5. 2064 7. 3255 7. 0197 6. 8028 6.7327 6. 6638 6.4632 6. 2098 5.9713 5. 7466 8. 1622 7. 7861 7.5208 7.4353 7. 3513 7. 1078 6. 8017 6.5152 6. 2469 10 8. 9826 8.5302 8. 2128 8. 1109 8. 0109 7. 7217 7.3601 7.0236 6.7101 20 16. 3514 14.8775 13.8962 13.5903 13. 2944 12. 4622 11.4699 10.5940 9. 8181 Periods* 9% 10% 11% 12% 13% 14% 15% 20% 25% 0. 9174 0.9091 0.9009 0. 8929 0. 8550 0. 8772 0. 8696 0. 8333 0. 8000 1. 7591 1. 7355 1. 7125 1. 6901 1. 6681 1. 6467 1. 6257 1.5278 1.4400 2. 5313 2. 4869 2. 4437 2. 4018 2. 3612 2. 3216 2.2832 2.1065 1.9520 3.2397 3.1699 3.1024 3.0373 2.9745 2.9137 2.8550 2. 5887 2. 3616 3.8897 3.7908 3. 6959 3. 6048 3.5172 3.4331 3.3522 2.9906 2. 6893 1 0 0 UP WNP 4. 4859 4.3553 4.2305 4. 1114 3.9975 3.8887 3. 7845 3.3255 2.9514 5.0330 4. 8684 4. 7122 4.5638 4. 4226 4. 2883 4. 1604 3. 6046 3. 1611 5.5348 5.3349 5. 1461 4.9676 4. 7988 4.6389 4. 4873 3.8372 3.3289 5.9952 5.7590 5.5370 5. 3282 5. 1317 4.9464 4. 7716 4. 0310 3.4631 10 6. 4177 6. 1446 5.8892 5. 6502 5.4262 5. 2161 5. 0188 4. 1925 3.5705 20 9. 1285 8. 5136 7.9633 7. 4694 7.0248 6.6231 6. 2593 4. 8696 3.9539TABLE 11.1A Future Value of $1 Periods 2 3% 3.75% 4% 4. 25% 5% 6% 7% 8% 1. 0000 1.0000 1. 0000 1.0000 1.0000 1.0000 1. 0900 1. 0900 1. 0900 1. 0200 1. 0300 1. 0375 1. 0400 1. 0425 1. 0500 1. 0600 1. 0700 1. 0800 1. 0404 1. 0609 1. 0764 1. 0816 1. 0868 1. 1025 1. 1236 1. 1449 1. 1664 1. 0612 1. 0927 1. 1168 1. 1249 1. 1330 1. 1576 1. 1910 1. 2250 1. 2597 1. 0824 1. 1255 1. 1587 1.1699 1. 1811 1. 2155 1. 2625 1. 3108 1. 3605 1. 1041 1. 1593 1. 2021 1. 2167 1. 2313 1. 2763 1. 3382 1. 4026 1. 4693 1. 1262 1. 1941 1. 2472 1. 2653 1. 2837 1. 3401 1. 4185 1.5007 1.5869 1. 1487 1. 2299 1. 2939 1. 3159 1. 3382 1. 4071 1. 5036 1. 6058 1. 7138 1. 1717 1. 2668 1. 3425 1. 3686 1. 3951 1.4775 1. 5938 1. 7182 1. 8509 1. 1951 1. 3048 1. 3928 1.4233 1. 4544 1. 5513 1. 6895 1. 8385 1.9990 10 1. 2190 1.3439 1. 4450 1. 4802 1. 5162 1. 6289 1. 7906 1.9672 2. 1589 20 1. 4859 1. 8061 2. 0882 2. 1911 2. 2989 2.6533 3. 2071 3. 8697 4. 6610 Periods 9% 10% 11% 12% 13% 14% 15% 20% 25% 1. 0000 1. 0000 1. 0000 1. 0000 1. 0000 1. 0000 1. 0000 1.0900 1. 0000 1. 0900 1. 1000 1. 1100 1. 1200 1. 1300 1. 1400 1. 1500 1. 2000 1. 2500 1. 1881 1. 2100 1. 2321 1. 2544 1. 2769 1. 2996 1. 3225 1. 4400 1. 5625 1. 2950 1. 3310 1. 3676 1. 4049 1. 4429 1. 4815 1. 5209 1. 7280 1.9531 1. 4116 1. 4641 1. 5181 1.5735 1. 6305 1. 6890 1. 7490 2. 0736 2. 4414 1.5386 1. 6105 1. 6851 1. 7623 1. 8424 1.9254 2. 0114 2. 4883 3. 0518 1. 6771 1. 7716 1. 8704 1.9738 2. 0820 2. 1950 2. 3131 2.9860 3. 8147 1. 8280 1.9487 2. 0762 2. 2107 2. 3526 2.5023 2.6600 3.5832 4. 7684 1.9926 2. 1436 2. 3045 2.4760 2. 6584 2. 8526 3.0590 4. 2998 5.9605 2. 1719 2.3579 2.5580 2.7731 3.0040 3. 2519 3. 5179 5. 1598 7. 4506 10 2.3674 2.5937 2. 8394 3.1058 3. 3946 3.7072 4. 0456 6. 1917 9. 3132 20 5.6044 6.7275 8. 0623 9. 6463 11. 5231 13.7435 16.3665 38.3376 86.7362