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Chapter 12 K Consider how Frost Valley, a popular ski resort, could use capital budgeting to decide whether the $8 million River Park Lodge expansion would be a good investment. (Click the icon to view the expansion estimates.) deo Data table Question 8, E12-34A (similar to) Part 1 of 7 X x Requirement 1. Compute the average annual net cash inflow from the expansion. First enter the formula, then compute the average annual net cash inflow from the expansion. (Round your answer to the nearest dollar.) Assume that Frost Valley's managers developed the following estimates concerning a planned expansion to its River Park Lodge (all numbers assumed): Number of additional skiers per day. Average number of days per year that weather conditions allow skiing at Frost Valley Useful life of expansion (in years). Average cash spent by each skier per day.. $ Average variable cost of serving each skier per day. S Cost of expansion.. $ Discount rate 121 157 8 245 136 8,000,000 10% > X HW Score: 0%, 0 of 10 points O Points: 0 of 1 Assume that Frost Valley uses the straight-line depreciation method and expects the lodge expansion to have a residual value of $750,000 at the end of its eight-year life. Read the requirements. Average annual net cash inflow Requirements 1. 2. Compute the average annual net cash inflow from the expansion. Compute the average annual operating income from the expansion. Compute the payback period. 3. 4. Compute the ARR. Print Done Clear all Save - X Check answer

Consider how Frost Valey, a popular ski resort, could use capkal budgeting to docide whether the III (Click the icon to verm the exponaion estimates.) Assume that frast Voley uses the straight ine depriciation method and expects the lodgo expansion to have a residual value of $750,000 at the end of tis eigheyear the Rand the Exournments Requirement 1. Conpile the average antual net cash inflow from the expansion. Fint enter the formula, then comoute the averape annual net cash infow from the oupansion, (Round your answer to the nearest doliar) Data table Requirements 1. Compute the merage annual net cash inflow from the expansion. 2. Cempute the average annust eperating insome from the expansion. 3. Complie the payback periot 4. Cempile the ARr