Consider how Hope Valley, a popular ski resort, could use capital budgeting to decide whether the $9 million River 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 $800,000 at the end of its nine-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 Number of ski days per year Average net cash inflow per day net cash inflow Data table - X Assume that Hope Valley's managers developed the following estimates concerning a planned expansion to its River Park Lodge (all numbers assumed): Number of additional skiers per day. . . . . Average number of days per year that weather conditions allow skiing at Hope Valley Useful life of expansion (in years)...... Average cash spent by each skier per day...... 124 163 9 $ 243 144 $ 9,000,000 12% Average variable cost of serving each skier per day . $ Cost of expansion... Discount rate. Print Done Requirements 1. Compute the average annual net cash inflow from the expansion. Compute the average annual operating income from the expansion. Compute the payback period. 2. 3. 4. Compute the ARR. Print Done