Assume that Frost Valley's managers developed the following estimates concerning a planned expansion to its Autumn Park Lodge (all numbers assumed): Number of additional skiers per day..... 121 Average number of days per year that weather conditions allow skiing at Frost Valley 157 Useful life of expansion (in years)... 10 Average cash spent by each skier per day 240 Average variable cost of serving each skier per day . $ 142 Cost of expansion $ 8,500,000 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. Consider how Frost Valley, a popular ski resort, could use capital budgeting to decide whether the $8.5 million Autumn Park Lodge expansion would be a good investment. (Click the icon to view the expansion estimates.) Assume that Frost Valley uses the straight-line depreciation method and expects the lodge expansion to have a residual value of $600,000 at the end of its ten-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.) Average annual net cash inflow Accumulated depreciation Annual depreciation expense Average net cash inflow per day Initial investment Number of ski days per year Total net cash inflow