Consider how Star Valley, a popular ski resort, could use capital budgeting to decide whether the $9 million Snow Park Lodge expansion would be a good investment. (Click the icon to view the expansion estimates.) 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.) $ Average net cash inflow per day 13,125 Average annual net cash inflow 2139375 X Ftext pages X $ Number of ski days per year 163 Get more help - Requirement 2. Compute the average annual operating income from the expansion. First enter the formula, then compute the average annual operating income from the expansion. (Round your answer to the nearest dollar.) Annual depreciation expense = = = Average annual net cash inflow 2,139,375 Assume that Star 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. Read the requirements. Average annual operating income from asset Data table Assume that Star Valley's managers developed the following estimates concerning a planned expansion to its Snow Park Lodge (all numbers assumed): Number of additional skiers per day.. Average number of days per year that weather conditions allow skiing at Star 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 Print Clear all Done 125 163 8 247 142 $ 9,000,000 14% Check answer

Rasithe casicroters. Mequiremant 1. Oompule Ese avernge avrial ina cash iofow tom the examan Data table Consider how Star Valiey, a popuar zie resort, oould use captel budgutiog to decise whether the sp mitice (Click the ioon to viow tha expaniof estirates? Raat be ievurterter Recuirement 1. Compule the averape annuar net cosh nlow from the exoansion, Data table Aqeumb that star Valey't nayejars byvicoed the felene astimules