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Consider how Hope Valiey, a popularski resort could use capital budgeting to decide whether the 58 milion Autumn Park Lodge expansion would be a good

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Consider how Hope Valiey, a popularski resort could use capital budgeting to decide whether the 58 milion Autumn Park Lodge expansion would be a good investment click the icon to view the expansion estimates) Assume that Hope Valley uses the straight-line depreciation method and expects the lodge expansion to have a residual value of $700.000 at the end of its ten-year life Read the requirements Requirement 1. Compute the average annual net cash inflow from the expansion First enter the formula, then compute the average annual net cash inflow from the expansion (Round your answer to the nearest dollar) Average annual net casino Requirement 2. Compute the average annual operating income from the expansion First enter the formula, then compute the average annual operating income from the expansion (Round your answer to the nearest dollar) Average annual operating income from assot Requirement 3. Compute the payback period First enter the formula, then compute the payback period (Entor amounts in dollars, not milions. Round your answer to two decimal places Payback period years Requirement 2. Compute the average annual operating income from the expansion First enter the formula, then compute the average annual operating income from the expansion. (Round your answer to the neare Average annual operating income from asset Requirement 3. Compute the payback period. First enter the formula, then compute the payback period. (Enter amounts in dollars, not millions. Round your answer to two decim Payback period years Requirement 4. Compute the ARR First enter the formula, then compute the accounting rate of return. (Enter amounts in dollars, not millions. Enter your answer as a Accounting rate of retum % Data table Assume that Hope Valley's managers developed the following estimates concerning a planned expansion to its Autumn Park Lodge (all numbers assumed): --- 10 ... Number of additional skiers per day 122 Average number of days per year that weather conditions allow skiing at Hope Valley 163 Useful life of expansion (in years) Average cash spent by each skier per day .......$ 235 Average variable cost of serving each skier per day . $ 145 Cost of expansion $ 8,000,000 Discount rate 12%

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