Consider how Hunter Valley Snow Park Lodge could use capital budgeting to decide whether the $11,000,000 Snow Park Lodge expansion would be a good investment. Assume Hunter Valley's managers developed the following estimates concerning the expansion: (Click the icon to view the estimates.) Assume that Hunter Valley uses the straight-line depreciation method and expects the lodge expansion to have a residual value of $500,000 at the end of its seven-year life. The average annual net cash inflow from the expansion is expected to be $2,714,756. Compute the payback for the expansion project. Round to one decimal place. + + = = Payback years Data table Number of additional skiers per day Average number of days per year that weather conditions allow skiing at Hunter Valley Useful life of expansion (in years) Average cash spent by each skier per day 121 skiers 142 days 7 years $ 241 Average variable cost of serving each skier per day 83 Cost of expansion 11,000,000 Discount rate 10% Print Done - X