Consider how Star Valley, a popular ski resort, could use capital budgeting to decide whether the $8.5 million Stream Park Lodge expansion would be a good investment (Click the icon to view the expansion estimates.) Assume that Star 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. Read the requirements Requirement 1. Compute the average annual net cash inflow from the expansion First enter the formula, then compute the average annual net cash inflow from the expansion, (Round your answer to the nearest dollar.) i Data Table Average annual net cash inflow Assume that Star Valley's managers developed the following estimates concerning a planned expansion to its Stream Park Lodge (all numbers assumed): * Requirements Number of additional skiers per 123 Average number of days per year that weather conditions allow skiing at Star Valley 156 Useful life of expansion (in years). 10 Average cash spent by each skier per day 235 Average variable cost of serving each skier per day . $ 136 Cost of expansion $ 8,500,000 Discount rate 124 1. 2. 3. 4. Compute the average annual net cash inflow from the expansion Compute the average annual operating income from the expansion. Compute the payback period. Compute the ARR Print Done Print Done