Consider how Cole Valley Stream Park Lodge could use capital budgeting to decide whether the $11,500,000 Stream Park Lodge expansion would be a good investment. Assume Cole Valley's managers developed the following estimates concerning the expansion: E (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 $750,000 at the end of its eight-year life. The average annual net cash inflow from the expansion is expected to be $2,798,880. Compute the payback for the expansion project. Round to one decimal place. Payback Data Table years Amount invested Expected annual net cash inflow Expected useful life Number of additional skiers per day 119 skiers Average number of days per year that weather conditions 147 days allow skiing at Cole Valley Useful life of expansion (in years) 8 years Average cash spent by each skier per day 247 Average variable cost of serving each skier per day 87 Cost of expansion 11,500,000 Discount rate 14% Print Done