BUS 121 Managerial AcctoA-Soo 8304 SP17 Quiz: Quiz 12 Chapter 12 This Question: 4 pts 1 of 4 This Quiz: 20 pts possible Consider cuate valey a popular ski resort oould use capital budgetrgtodecide whether the sas mison snowPak Ledao expansion would be a good mvestment. (click the ioon to view the expansion estrates. clare Valey's managers initally assumed a residual value of s500,000, a payback penod of 427 years and an ARRof 1294% Now assume the expansion has zero residua vaun 1. Wll the payback period change? Explain and recalaulate if necessary. 2. Wil the proioots ARR change? Explain and recalculato if neoessary. 3. Assume that Clare Valey soreens its potential capital investments using the following decision criteria: maximum payback period 5 years and minimum acoountngrato of return 10%. Wil Caro Valley oorsider this project further or reject it? Requirement 1. Wil the payback period change? Explain and recaloula T cash tows that occur aner the payback period. The residual value T affect cash nows until the end of the The initial payback period of 4.27 years change since the method assofs life, so it in the original payback calculation. First enter the formula, then calculate the payback poriod with no rosidual value. (Enter amounts in dollars, not milions Round your answor to two decimal places) Payback period choose from any list or ontor any number inthe input fields and then continue to the next question O Type here to search