Consider how Juda Valley Brook Park Lodge could use capital budgeting to decide whether the $11,000,000 Brook Park Lodge expansion would be a good investment Assume Juda Valley's managers developed the following estimates concerning the expansion: (Click the icon to view the estimates.) (Click the icon to view additional information) Read the requirements More info Requirement 1. Will the payback change? Explain your answer. Recalculate the payback if it changes. Round to one decimal place. Select the formula to calculate the payback period. Amount invested Expected annual net cash inflow Payback The payback will continue to be The residual value does not affect the computation of the payback and the payback method does not consider cash flows that occur an Data table Requirements Under the assumption that the expansion would have a residual value of $950,000, the managers calculated the payback period to be 4.3 years, the ARR to be 26.17%, the average annual operating income to be $1,563,870, the average amount invested to be $5,975,000, and the average annual net cash inflow to be $2.568,870 Assume that Juda Valley uses the straight-line depreciation method and now expects the lodge expansion to have zero residual value at the end of its ten-year Print Done Number of additional skiers per day 115 kes 1. Will the payback change? Explain your answer. Recalculate the payback changes. Round to one decimal place. Average number of days per year that weather conditions allow skiing at Juda Valley 140 days 2. Will the project's ARR change? Explain your answer. Recalculate ARR changes. Round to two decimal places. Useful site of expansion (in years) 10 years 3. Assume Juda Valley screens its potential capital investments using the following decision criteria Average cash spent by each skier per day $ 240 Average variable cost of serving each skier per day Cost of expansion 11.000.000 Maximum payback period 5.0 years Minimum accounting rate of return 17.05% Discount rate Will Juda Valley consider this project further or reject?