Consider how Smith Valley Spring Park Lodge could use capital budgeting to decide whether the $11,000,000 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 $800,000 at the end of its ten-year life. The average annual net cash inflow from the expansion is expected to be $2.971,680. Compute the payback for the expansion project. Round to one decimal place. 1 Amount invested Expected useful life L = = Payback years 0 Data Table - X 120 skiers 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 Average variable cost of serving each skier per day Cost of expansion Discount rate 151 days 10 years 247 11,000,000 Print Done