Consider how Golden Valley, a popular i resort, could use capital budgeting to decide whether the $8 million River Park Assure that Golden Valley uses the straight-line depreciation method and expects the lodge expansion to have a Lodge expansion would be a good investment. residual value of $900,000 at the end of its eight-year life. 2 (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.) Average annual Average net cash inflow per day 12.078 Number of ski days per year 161 nel cash inflow 1,944,558 S x S Requirement 2. Compute the average annual operating income from the expansion First enter the formula, then compute the average annual operating income from the expansion. (Round your answer to the nearest dollar.) Average annual operating Average annual net cash inflow Annual depreciation expense income from asset 1.944,558 1000000 944558 Consider how Golden Valley, a popular i resort, could use capital budgeting to decide whether the $8 million River Park Assume that Golden Valley uses the straight-line depreciation method and expects the lodge expansion to have a Lodge expansion would be a good investment residual value of $900,000 at the end of its eight-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.) Number of skid Average net cash inflow per day 12.078 Requirements S x S 16 Requirement 2. Compute the average annual operating income from First enter the formula, then compute the average annual operating Inc 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. Average annual net cash inflow 1.944,558 Annual depreciation 1000000 Print Done Consider how Golden Valley, a popular i resort, could use capital budgeting to decide whether the $8 million River Park Assume that Golden Valley uses the straight-line depreciation method and expects the lodge expansion to have a Lodge expansion would be a good investment. residual value of $900,000 at the end of its eight-year life. (Click the icon to view the expansion estimates.) Read the requirements Requirement 1. Compute the average annual net cash inflow from the expa First enter the formula, then compute the average annual net cash inflow from Data Table Number of ski days p Average net cash inflow per day 12.078 Assume that Golden Valley's managers developed the following estimates concerning a planned expansion to ils River Park Lodge (all numbers assumed): S x S Requirement 2. Compute the average annual operating income from the ex First enter the formula, then compute the average annual operating income Number of additional skiers per day .......... 122 Average number of days per year that weather conditions allow skiing at Golden Valley ........... 161 Useful life of expansion (in years) 8 Average cash spent by each skier per day......... $ 243 Average variable cost of serving each skler per day - $ 144 Cost of expansion $ 8,000,000 Discount rate. . 12% Average annual net cash inflow $ 1.944,558 Annual depreciation exper 1000000 Print Done