Consider how Root Valley River Park Lodge could use capital budgeting to decide whether the $12,500,000 River Park Lodge expansion would be a good investment. Assume Root Valley's managers developed the following estimates concerning the expansion (Click the icon to view the estimates.) Read the requirements2 6. Requirement 1. Compute the average annual net cash inflow from the expansion. The average annual net cash inflow from the expansion is $ Requirement 2. Compute the average annual operating income from the expansion. The average annual operating income from the expansion is $ 1: Data Table 118 skiers Number of additional skiers per day Average number of days per year that weather conditions 45 days allow skiing at Root 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 10 years 246 78 12,500,000 1096 Assume that Root Valley uses the straight-line depreciation method and expects the lodge expansion to have a residual value of $600,000 at the end of its ten-year life