Consider how Flint Valley, a popular ski resort, could use capital budgeting to decide whether the $8 million Assume that Flint Valley uses the straight-line depreciation method and expects the lodge expansion to Waterfall Park Lodge expansion would be a good investment. EEB (Click the icon to view the expansion estimates.) have a residual value of $850,000 at the end of its ten-year life. Read the requirements Requirement 1. Compute the average annual net cash inflow from the expansion Data Table First enter the formula, then compute the average annual net cash inflow from the expansion. (Round your answer to the nearest dollar.) Aver rage annual net cash inflow Assume that Flint Valley's managers developed the following estimates concerning a planned expansion to its Waterfall Park Lodge (all numbers assumed) 119 Number of additional skiers per day Average number of days per year that weather Requirements 1. 2. 3. 4. Compute the average annual net cash inflow from the expansion Compute the average annual operating income from the expansion Compute the payback period Compute the ARR. conditions allow skiing at Flint Valley Useful life of expansion (in years). Average cash spent by each skier per day Average variable cost of serving each skier per day Cost of expansion Discount rate. 162 10 235 140 S 8,000,000 12% ...$ PrintDone PrintDone Consider how Flint Valley, a popular ski resort, could use capital budgeting to decide whether the $8 million Assume that Flint Valley uses the straight-line depreciation method and expects the lodge expansion to Waterfall Park Lodge expansion would be a good investment. EEB (Click the icon to view the expansion estimates.) have a residual value of $850,000 at the end of its ten-year life. Read the requirements Requirement 1. Compute the average annual net cash inflow from the expansion Data Table First enter the formula, then compute the average annual net cash inflow from the expansion. (Round your answer to the nearest dollar.) Aver rage annual net cash inflow Assume that Flint Valley's managers developed the following estimates concerning a planned expansion to its Waterfall Park Lodge (all numbers assumed) 119 Number of additional skiers per day Average number of days per year that weather Requirements 1. 2. 3. 4. Compute the average annual net cash inflow from the expansion Compute the average annual operating income from the expansion Compute the payback period Compute the ARR. conditions allow skiing at Flint Valley Useful life of expansion (in years). Average cash spent by each skier per day Average variable cost of serving each skier per day Cost of expansion Discount rate. 162 10 235 140 S 8,000,000 12% ...$ PrintDone PrintDone
