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Consider how Preston Valley Brook Park Lodge could use capital budgeting to decide whether the exist12500,000 Brook Pak Lodge expansion would be a good investment.

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Consider how Preston Valley Brook Park Lodge could use capital budgeting to decide whether the exist12500,000 Brook Pak Lodge expansion would be a good investment. Assume Preston Valley's managers developed the following estimates concerning the expansion. Assume that Preston Valley uses the straight-line depreciation method and expects the lodge expansion to have a residual value of exist5500,000 at the end of its twelve-year life. The average annual operating income from the expansion is exist1, 769, 430 and the depreciation gas been calculated an exist1,000,000. Calculate ne ARR. Round to two decimal places

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