Consider how Preston Valley Spring Park Lodge could use capital budgeting to decide whether the $12,500,000 Spring Park Lodge expansion would be a good investment. Assume Preston Valley's managers developed the following estimates conceming the expansion: (Click the icon to view the estimates.) Read the requirements Requirement 1. Compute the average annual net cash inflow from the expansion. The average annual net cash inflow from the expansion is S Requirement 2. Compute the average annual operating income from the expansion. The average annual operating income from the expansion is S Data Table 119 skiens Number of additional skiers per day Average number of days per year that weather conditions 148 days 12 years allow skiing at Preston Valley Useful llfe of expanslon (in years) Average cash spent by each skier per day $ Average variable cost of serving each skier per day Cost of expansion Discount rate 244 79 12,500,000 12% Assume that Preston Valley uses the straight-line depreciation method and expects the lodge expansion to have a residual value of S950,000 at the end of its twelve-year life. Print Done