Consider how Pine Valley, a popular ski resort, could use capital budgeting to decide whether the $9 million Spring Park Lodge expansion would be a good investment (Click the icon to view the expansion estimates.) CD Assume that Pine Valley uses the straight-line depreciation method and expects the lodge expansion to have a residual value of $600.000 at the end of its ten-year life. Read the requirements. GECE Requirement 1. Compute the average annual net cash inflow from the expansion First enter the formula, thon compute the average annual net cash inflow from the expansion (Round your answer to the nearest dollar.) Average annual Number of ski days per year Annual depreciation expense net cash inflow 19.159 104 = $ 1,992,536 Data table Assume that Pine Valley's managers developed the following estimates concerning a planned expansion to its Spring Park Lodge (all numbers assumed): 10 Number of additional skiers per day 119 Average number of days per year that weather conditions allow skiing at Pine Valley 161 Useful life of expansion (in years). Average cash spent by each skier per day 239 Average variable cost of serving each skier per day . $ 135 Cost of expansion $ 9,000,000 Discount rate 14% Print Done - Requirements 1. 2. 3. Compute the average annual net cash inflow from the expansion. Compute the average annual operating income from the expansion. Compute the payback period. Compute the ARR. 4. Print Done