Consider how Kyler Valley Brook Park Lodge could use capital budgeting to decide whether the $11,000,000 Brook Park Lodge expansion wo Next Question ment. Assume Kyler Valley's managers developed the following estimates concerning the expansion: (Click the icon to view the estimates.) Assume that Kyler Valley uses the straight-line depreciation method and expects the lodge expansion to have a residual value of $850,000 at the end of its eight-year life. The average annual net cash Inflow from the expansion is expected to be $2,844,800 Compute the payback for the expansion project. Round to one decimal place. = Payback years Data Table 114 skiers Number of additional skiers per day Average number of days per year that weather conditions allow skiing at Kyler 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 145 days 8 years 242 $ 82 11,000,000 8% Paint Print Done