Consider how Kyler Valley Spring Park Lodge could use capital budgeting to decide whether the $12,000,000 Spring Park Lodge expansion would be a good investment. Assume Kyler Valley's managers developed the following estimates concerning the expansion E (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 S Requirement 2. Compute the average annual operating income from the expansion The average annual operating income from the expansion is S Data Table Number of additional skiers per day 122 skiers Average number of days per year that weather conditions allow skiing at Kyler Valley 147 days Useful life of expansion (in years) 10 years Average cash spent by each skier per day 239 Average variable cost of serving each skier per day 88 Cost of expansion 12,000,000 Discount rate 12% Assume that Kyler Valley uses the straight-line depreciation method and expects the lodge expansion to have a residual value of $950,000 at the end of its ten-year life. Print Done Requirements 1. Compute the average annual net cash inflow from the expansion. 2. Compute the average annual operating income from the expansion. Print Done