Consider how Mcknight Valley River Park Lodge could use capital budgeting to decide whether the $12,500,000 River Park Lodge expansion would be a good investment. Assume McKnight Valley's managers developed the following estimates concerning the expansion 1: (Click the icon to view the estimates.) Assume that Mcknight Valley uses the straight-line depreciation method and expects the lodge expansion to have a residual value of $500,000 at the end of its ten-year life. The average annual net cash inflow from the expansion is expected to be $2,700,714 Compute the payback for the expansion project. Round to one decimal place. Payback I years * Data Table 122 skiers 141 days 10 years Number of additional skiers per day Average number of days per year that weather conditions allow sking at McKnight 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 Choose from any list or enter any number 12,500,000 8% Save for Later