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Consider how Clare Valley, a popular ski resort, could use capital budgeting to decide whether the $9.5 million Stream Park Lodge expansion would be a

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Consider how Clare Valley, a popular ski resort, could use capital budgeting to decide whether the $9.5 million Stream Park Lodge expansion would be a good investment. (Click the icon to view the expansion estimates.) Assume that Clare Valley uses the straight-line depreciation method and expects the lodge expansion to have a residual value of $850,000 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.) Average annual net cash inflow Data Table - X concerning a planned expansion to its Stream Park Lodge (all numbers assumed): 119 Number of additional skiers.per.day. ................ Average number of days per year that weather .conditions allow.skiing.at. Clare Valley....... Useful. life.of.expansion (in.years). Average cash.spent.by. each skier.per.day ........... Average variable cost of serving each.skier. per day.... 245 A 132 A Cast of expansion .. $ 9,500,000 10% Discount.rate.... D O CUUIIlIalo

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