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Consider how Preston Valley Brook Park Lodge could use capital budgeting to decide whether the $11,000,000 Brook Park 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 $11,000,000 Brook Park Lodge expansion would be a good investment. Assume Preston Valley's managers developed the following estimates concerning the expansion the loon to view the estimates.) . The average annual Assume that Preston Valley uses the straight-line depreciation method and expects the lodge expansion to have a residual value of $500.000 at the end of its eight year operating income from the expansion is $1.632.750 and the depreciation has been calculated as $1.312.500 Calculate the AHOR. Round to two decimal places Data Table 119 skers 150 days 8 years Number of additional skiers per day Average number of days per year that weather conditions allow skiing at Preston Valley Useful fe of expansion in years) Average cash sent by each skier per day Average variable cost of serving each skler per day Cost of expansion Discount rate $ 240 Choose from any list or enter any number in the input fields and then continue to the next question 11,000,000

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