Consider how Cole Valley Brook Park Lodge could use capital budgeting to decide whether the $12,500,000 Brook Park Lodge expansion would be a good investment. Assume Cole Valley's managers developed the following estimates concerning the expansion: (Click the icon to view the estimates.) Assume that Cole Valley uses the straight-line depreciation method and expects the lodge expansion to have a residual value of $950,000 at the end of its eight-year life. The average annual operating income from the expansion is $1,493,850 and the depreciation has been calculated as $1,443,750. Calculate the ARR. Round to two decimal places. = ARR % Data table Number of additional skiers per day Average number of days per year that weather conditions allow skiing at Cole Valley Useful life of expansion (in years) Average cash spent by each skier per day Average variable cost of serving each skier per day Cost of expansion Discount rate Print Done 120 skiers 144 days 8 years 246 76 12,500,000 10%