Consider how McKnight Valley River Park Lodge could use capital budgeting to decide whether the $ $12$ comma $000$ comma $000$ River Park Lodge expansion would be a good investment. Assume McKnight $$Valley$\text{'}$s managers developed the following estimates concerning the$$ expansion: Number of additional skiers per day

$116$ skiers

Average number of days per year that weather conditions allow skiing at McKnight Valley

$142$ days

Useful life of expansion $($in years$)$

$8$ years

Average cash spent by each skier per day

$$244$

Average variable cost of serving each skier per day

$84$

Cost of expansion

$12,000,000$

Discount rate

$10\%$

Assume that McKnight Valley uses the$$ straight$-$line depreciation method and expects the lodge expansion to have a residual value of $ $850$ comma $000$ at the end of its eight$-$year life.

$1.$Compute the average annual net cash inflow from the expansion.

$2.$Compute the average annual operating income from the