5 E11-14 (Algo) Calculating ARR, Payback period and NPV (LO 11-1, 11-2, 11-3] 3 Robertson Resorts is considering whether to expand their Pagosa Springs Lodge. The expansion will create 24 additional rooms for rent. The following estimates are available: points eBook Cost of expansion Discount rate Useful life Annual rental income Annual operating expenses $3,090,000 10% 20 $2,100,eee $1,650, eee Print 0 Robertson uses straight-line depreciation and the lodge expansion will have residual value of $2,680,000. References Required: 1. Calculate the annual net operating income from the expansion. 2. Calculate the annual net cash inflow from the expansion. 3. Calculate the ARR. (Round your answer to 2 decimal places.) 4. Calculate the payback period. (Round your answer to 1 decimal place.) 5. Calculate the NPV. (Future Value of $1, Present Value of $1, Future Value Annuity of $1, Present Value Annuity of $1.) (Use appropriate factor(s) 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 Inflow 3. ARR 4. Payback Period 5 NPV % years