Consider how Kyler Valley Waterfall Park Lodge could use capital budgeting to decide whether the $12,000,000 Waterfall 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.) (Click the icon to view additional information.) Read the requirements. 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. Da table More info Under the assumption that the expansion would have a residual value of $600,000, the managers calculated the payback period to be 4.5 years, the ARR to be 19.63%, the average annual operating income to be $1,236,790, the average amount invested to be $6,300,000, and the average annual net cash inflow to be $2,661,790. Assume that Kyler Valley uses the straight-line depreciation method and now expects the lodge expansion to have zero residual value at the end of its eight-year life. Requirements 1. Will the payback change? Explain your answer. Recalculate the payback if it changes. Round to one decimal place. 2. Will the project's ARR change? Explain your answer. Recalculate ARR if it changes. Round to two decimal places. 3. Assume Kyler Valley screens its potential capital investments using the following decision criteria: Will Kyler Valley consider this project further or reject it