Consider how Preston Valley Waterfall Park Lodge could use capital budgeting to decide whether the $11,000,000 Waterfall Park Lodge expansion would be a good investment. Assume Preston Valley's managers following estimates concerning the expansion: E: (Click the icon to view the estimates.) Read the requirements Data table Requirement 1. Compute the average annual net cash inflow from the expansion. 116 skiers The average annual net cash inflow from the expansion is 141 days Requirement 2. Compute the average annual operating income from the expansion. Number of additional skiers per day Average number of days per year that weather conditions allow skiing at Preston Valley Useful life of expansion (in years) Average cash spent by each skier per day Average variable cost of serving each skier per day Cost of expansion Discount rate 8 years 236 $ The average annual operating income from the expansion is 78 11,000,000 8% Requirements Assume that Preston Valley uses the straight-line depreciation method and expects the lodge expansion to have a residual value of $1,000,000 at the end of its eight-year life. 1. Compute the average annual net cash inflow from the expansion. 2. Compute the average annual operating income from the expansion. Print Done Print Done