Consider how Cole Valley Spring Park Lodge could use capital budgeting to decide whether the $11,500,000 Spring 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.) Read the requirements. X Requirement 1. Compute the average annual net cash inflow from the expansion. Data table The average annual net cash inflow from the expansion is Requirement 2. Compute the average annual operating income from the expansion. Number of additional skiers per day 122 skiers Average number of days per year that weather conditions 151 days The average annual operating income from the expansion is allow skiing at Cole Valley Useful life of expansion (in years) 11 years Average cash spent by each skier per day 235 Average variable cost of serving each skier per day 88 Cost of expansion 11,500,000 Requirements Discount rate 12% Assume that Cole Valley uses the straight-line depreciation method and expects 1. Compute the average annual net cash inflow from the expansion. the lodge expansion to have a residual value of $500,000 at the end of its 2. Compute the average annual operating income from the expansion. eleven-year life