Consider how Monterey Snow Park Lodge could use capital budgeting to decide whether a $$13,000,000$ lodge expansion would be a good investment. Assume Monterey Snow Park Lodge's managers developed the

following estimates concerning the expansion:

View the estimates. ${?}^4$

Assume that Monterey Snow Park Lodge uses the straight$-$line depreciation method and expects the lodge expansion to have a residual value of $$600,000$ at the end of its $10-$year life. The average annual operating

income from the expansion is $$1,577,930$ and the depreciation has been calculated as $$1,240,000.$

Calculate the ARR. Round to two decimal places.

$(2),=$ ARR

$,=,\%$

$4$: Estimates

Average annual net cash inflow

$(2)$

Amount invested

Amount invested

Average annual operating income

Annual depreciation

Residual value

Annual depreciation

Average annual net cash inflow

Average amount invested

Average amount invested

Average annual operating income

Residual value