Consider how Kyler Valley Stream Park Lodge could use capital budgeting to decide whether the $12,000,000 Stream Park Lodge expansion would be a good investment. 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 ten-year life. The average annual operating income from the expansion is $1,609,840 and the depreciation has been calculated as $1,115,000 Calculate the ARR. Round to two decimal places. ARR % j Data Table x 116 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 10 years 242 80 12,000,000 14% Print Done