Consider how Smith 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 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 $750,000 at the end of its ten-year life. The average annual net cash inflow from the expansion is expected to be $2,694,450. Compute the payback for the expansion project. Round to one decimal place Payback years Data Table 115 skiers mi 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 S 142 days 10 years 244 79 11,000,000 10% Print Done Consider how Preston Valley Stream Park Lodge could use capital budgeting to decide whether the $13,000,000 Stream Park Lodge expansion would be a good investment. Assume Preston Valley's managers developed the following estimates concerning the expansion: Click the icon to view the estimates.) 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 ten-year life. The average annual operating income from the expansion is 51.687.620 and the depreciation has been calculated as $1,200,000 Calculate the ARR. Round to two decimal places ARR % Data Table 114 skiers Number of additional skiers per day Average number of days per year that weather conditions allow skiing at Proston 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 149 days 10 years $ 245 75 13,000,000 Discount rate 10%