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: 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 $ Requirement 2. Compute the average annual operating income from the expansion. The average annual operating income from the expansion is $ Data Table Number of additional skiers per day 120 skiers Average number of days per year that weather conditions allow skiing at McKnight Valley 143 days Useful life of expansion (in years) 12 years Average cash spent by each skier per day 243 Average variable cost of serving each skier per day 82 Cost of expansion 12,500,000 Discount rate 8% Assume that McKnight 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 twelve-year life Print Done