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Consider how Cherry Valley, a popular ski resort, could use capital budgeting to decide whether the $8 milion Brook Park Lodge expansion would be a good investment. (Click the icon to view the expansion estimates.) Assumentat Cherry Valiey uses the straight-line depreciation method and expects the lodge expansion to have a residual value of $1,000,000 at the end of its nine-year life. Read the requirements. 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 Cherry Valley's managers developed the following estimates concerning a planned expansion to its Brook Park Lodge (all numbers assumed): Number of additional skiers per day 123 Average number of days per year that weather conditions allow skiing at Cherry Valley. 159 Useful life of expansion (in years) 9 Average cash spent by each skier per day . 247 Average variable cost of serving each skier per day . $ 146 Cost of expansion 8,000,000 Discount rate 10% 1. Compute the average annual net cash inflow from the expansion. 2. Compute the average annual operating income from the expansion. 3. Compute the payback period. 4. Compute the ARR. could use capital budgeting to expansion would be a good es.) Assume that Cherry Valley uses th expects the lodge expansion to ha end of its nine-year life. Read the requirements. t cash inflow from the expansion. annual net cash inflow from the expansion. (Round your answer to the neare sider how Cherry Valley, a popular ski resi de whether the \$8 million Brook Park Lodc stment. (Click the icon to view the expansion estin ssume that Cherry Valley uses the cpects the lodge expansion to have id of its nine-year life. ead the requirements. guirement 1. Compute the average annual t enter the formula, then compute the averi (Round your answer to the neares