Calculate the ARR. Round to two decimal places.

Consider how Stenback Valley Snow Park Lodge could use capital budgeting to decide whether the $11,000,000 Snow Park Lodge expansion would be a good investment. Assume Stenback Valley's managers developed the following estimates concerning the expansion: (Click the icon to view the estimates.) Assume that Stenback 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 eight-year life. The average annual operating income from the expansion is $1, 387, 256 and the depreciation has been calculated as $1, 300,000. Calculate the ARR. Round to two decimal places