Consider how Frost Valley, a popular ski resort, could use capital budgeting to decide Assume that Frost Valley uses the straight-line depreciation method and expects the whether the $9 million Waterfall Park Lodge expansion would be a good investment. lodge expansion to have a residual value of $500,000 at the end of its nine-year life. (Click the icon to view the expansion estimates.) 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.) Assume that Frost Valley's managers developed the following estimates concerning a planned expansion to its Waterfall Park Lodge (all numbers assumed): Number of additional skiers per day ............. 119 Average number of days per year that weather conditions allow skiing at Frost Valley 156 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 . ..\$ 9,000,000 Requirements 1. Compute the average annual net cash inflow from the expansion. 2. Compute the average annual operating income from the expansion. 3. Compute the payback period. 4. Compute the ARR