4 of 19 (2 complete) k Lodge could use capital budgeting to decide whether the $11,500,000 Brook Park Lodge weloped the following estimates concerning the expansion: ates.) LAAAAA ngi ng Data Table ra 120 skiers mai pay 150 days Number of additional skiers per day Average number of days per year that weather conditions allow skiing at Cole 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 8 years 236 85 11,500,000 Discount rate 10% Print Done and then click Check Answer Clear All next, go to your Study Plan. Homework: Week Eight : Chapter 11 : Exercises Save in Score: 0 of 1 pt 4 of 19 (2 completo) HW Score: 10.53%, 2 of 19 pts S26-7 (similar to) Question Help Consider how Cole Valley Brook Park Lodge could use capital budgeting to decide whether the $11,500,000 Brook Park Lodge expansion would be a good investment. Assume Cole Valley's managers developed the following estimates concerning the expansion: (Click the icon to view the estimates.) Under the assumption that the expansion would have a residual value of $750,000, the managers calculated the payback period to be 4.2 years, the ARR to be 22.44%, the average annual operating income to be $1,374,250, the average amount invested to be $6.125,000, and the average annual net cash inflow to be $2,718,000 Assume that Cole Valley uses the straight-line depreciation method and now expects the lodge expansion to have zero residual value at the end of its eight-year life. Read the requirements Requirement 1. Will the payback chango? Explain your answer. Recalculate the payback if it changes. Round to one decimal place Select the formula to calculate the payback period. Payback Inc V1) 0/1) 0/1) 0/1) Choose from any drop-down list and then click Check Answer Check Answer Clear All 4 Parts remaining Study Plan e could use capital budgeting to decide whether the $11,500,000 Brook Park Lodge the following estimates concerning the expansion: Requirements 1. Will the payback change? Explain your answer. Recalculate the payback if it changes. Round to one decimal place. 2. Will the project's ARR change? Explain your answer. Recalculate ARR if it changes. Round to two decimal places. 3. Assume Cole Valley screens its potential capital investments using the following decision criteria: Maximum payback period Minimum accounting rate of return 5.3 years 12.00 % Will Cole Valley consider this project further or reject it? Print Done and then click Check Answer. Clear All next, go to your Study Plan. e could use capital budgeting to decide whether the $11,500,000 Brook Park Lodge the following estimates concerning the expansion: i Data Table 120 skiers 150 days Number of additional skiers per day Average number of days per year that weather conditions allow skiing at Cole 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 Discount rate 8 years 236 85 11,500,000 10% Print Done d then click Check Answer. Clear All ext, go to your Study Plan. nomework: Week Eight : Chapter 11 : Exercises Save Score: 0 of 1 pt 4 of 19 (3 completo) HW Score: 10.53%, 2 of 19 p S26-7 (similar to) Question Help Consider how Cole Valley Brook Park Lodge could use capital budgeting to decide whether the $11,600,000 Brook Park Lodge expansion would be a good investment Assume Cole Valley's managers developed the following estimates concerning the expansion: Click the icon to view the estimates.) Under the assumption that the expansion would have a residual value of $750,000, the managers calculated the payback period to be 4.2 years, the ARR to be 22.44%, the average annual operating income to be $1,374,250, the average amount invested to be $6,125,000, and the average annual net cash inflow to be $2,718,000. Assume that Cole Valley uses the straight-line depreciation method and now expects the lodge expansion to have zero rosidual value at the end of its eight-year life. Read the requirements Requirement 1. Will the payback change? Explain your answer. Recalculate the payback if it changes. Round to one decimal place. Select the formula to calculate the payback period. Payback Choose from any drop-down list and then click Check Answer. Check Answer Clear All 4 parts remaining 4 of 19 (3 complete) Lodge could use capital budgeting to decide whether the $11,500,000 Brook Park Lodge ped the following estimates concerning the expansion: es.) Requirements 1. Will the payback change? Explain your answer. Recalculate the payback if it changes. Round to one decimal place. 2. Will the project's ARR change? Explain your answer. Recalculate ARR if it changes. Round to two decimal places. 3. Assume Cole Valley screens its potential capital investments using the following decision criteria: Maximum payback period Minimum accounting rate of return 5.3 years 12.00 % Will Cole Valley consider this project further or reject it? Print Done nd then click Check Answer. Clear All ext, go to your Study Plan