Consider how Hope Valley, a populares con budgeting to decide whether the con Brook Park Lodge expansion would be a good sent ck the icon to view the expansiones Assume that Hope Veterine depreciation method and expects the body to have a res 51 000 000 at the end of the year Read the Requirement 1. Com the cashow from the First enter the formula, the compute the average rat cash flow from the expansion found your awer to the dar) Average 1 Data Table Requirements Assume that Hope Voley's managers died on este concerning and expostos de umbers and Number of today Average number of days per year weather 150 Use of Average cash sport by each day 5 Average cost of serving each ser per day 5 Cost of expansion $9.000000 Discount 1 2. 3 Compute the average cashow from the expansion Compute the average annual operating income from the expansion Compute the payback porod Compute the ARR 4. Done Assume that Hope Valley's managers developed the following estimates concerning a planned expansion to its Brook Park Lodge (all numbers assumed): Number of additional skiers per day. . 125 158 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 9 $ 241 Average variable cost of serving each skier per day $ 134 Cost of expansion. $ 9,000,000 Discount rate. 14% A Requirements 1. 2. 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. 3. 4. Assume that Hope Valley uses the straight-line depreciation method and expects the lodge expansion to have a residual value of $1,000,000 at the end of its nine-year life. Read the requirements