Consider how Root Valley Waterfall Park Lodge could use capital budgeting to decide whether the $12,000,000 Waterfall 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 requirements Requirement 1. Compute the average annual net cash inflow from the expansion. The average annual net cash inflow from the expansion is Data table Number of additional skiers per day Average number of days per year that weather conditions allow skiing at Root Valley 122 skiers 148 days Useful life of expansion (in years) 8 years Average cash spent by each skier per day $ 238 Average variable cost of serving each skier per day 79 Cost of expansion 12,000,000 8% Discount rate Assume that Root Valley uses the straight-line depreciation method and expects the lodge expansion to have a residual value of $950,000 at the end of its eight-year life.