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Consider how Juda Valley Brook Park Lodge could use capital budgeting to decide whether the 511,000,000 Brook Park Lodge expansion would be a good investment

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Consider how Juda Valley Brook Park Lodge could use capital budgeting to decide whether the 511,000,000 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) Read the requirements Requirement 1. Compute the average annual net cash inflow from the expansion The average annual net cash inflow from the expansion is Data table sion would be a Valley Brod Juda Valle view the 118 skiers hts 146 days 10 years pute the Number of additional skiers per day Average number of days per year that weather conditions allow skiing at Juda Valley Useful life of expansion (in years) Average cash spent by each skier per day Average variable cost of serving each skier per day Cost of expansion Discount rate $ 236 81 net cash 11,000,000 8% Assume that Juda Valley uses the straight-line depreciation method and expects the lodge expansion to have a residual value of $600,000 at the end of its ten-year life Print Done Brook Park Lodge Valley's managers developed the following estimates concerning the expansion the estimates) - x irements Requirements the sh 1. Compute the average annual net cash inflow from the expansion 2. Compute the average annual operating income from the expansion. Print Done

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