Consider how Smith Valley Spring Park Lodge could use capital budgeting to decide whether the $13,000,000 Spring Park Lodge expansion would be a good investment Assume Smith Valley's managers developed the following estimates concerning the expansion (Click the icon to view the estimates) Assume that Smith 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 ten-year life. The average annual net cash inflow from the expansion is expected to be $2,802.093 Compute the payback for the expansion project. Round to one decimal place. www Payback years Data table Number of additional skiers per day Average number of days per year that weather conditions allow skiing at Smith Valley Useful life of expansion (in years) Average cash spent by each skier per day 119 skiers 141 days 10 years $ 242 Average variable cost of serving each skier per day 75 Cost of expansion 13,000,000 Discount rate 12% Print Done