Consider how Frost Valley, a popular ski resort, could use capital budgeting to decide whether the $8.5 million Autumn Park Lodge expansion would be a good investment. (Click the icon to view the expansion estimates.) Assume that Frost Valley uses the straight-line depreciation method and expects the lodge expansion to have a residual value of $700,000 at the end of its eight-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.) Average annual net cash inflow Average net cash inflow per day x Assume that Frost Valley's managers developed the following estimates concerning a planned expansion to its Autumn Park Lodge (all numbers assumed): 119 0 Requirements Number of additional skiers per day......... Average number of days per year that weather conditions allow.skiing.at. Frost Valley..... Useful.life.of.expansion (in.years)... Average cash.spent.by. each skier.per day ........... Average variable cost of serving each.skier per day.... $ Cast of expansion .......... ......... $ 237 1. 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. 132 8,500,000 14% 3. Discount.rate....................... 4 Computib Print Done Print Done