Consider how Pine Valley, a popular ski resort, could use capital budgeting to decide whether the $8 million River Park Lodge expansion would be a good investment. (Click the icon to view the expansion estimates.) Assume that Pine Valley uses the straight-line depreciation method and expects the lodge expansion to have a residual value of $700,000 at the end of its sight-year life. Read the recuirements Requirement 1. Compute the average annual net cash inflow from the expansion. First enter the formula, then compute the average annual net cash inflow from the expansion. (Round your answer to the nearest dollar.) i Data Table Total net cash inflow Average net cash inflow per day = = Average annual net cash inflow 2,072,304 108 1918B $ Assume that Pine Valley's managers developed the following estimates concerning a planned expansion to its River Park Lodge (all numbers assumed: i Requirements 1. 2. 3. 4. 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. Number of additional skiers per day Average number of days per year that weather conditions allow.skiing.at Pine. Valey......... Useful life of axpansion in years).................. Average cash.spent by each skier.per.day........... $ Average variable cost of seoving each.skler per day.... $ Cost of expansion .............................. $ Discount.rate.................................. 8,000,000 14% Print Done Print Done Choose from any list or enter any number in the input fields and then click Check