Consider how White Valley Brook Park Lodge could use capital budgeting to decide whether the $12,500,000 Brook Park Lodge expansion would be a good investment. Assume White Valley's managers developed the following estimates concerning the expansion: (Click the icon to view the estimates.) Assume that White 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 twelve-year life. The average annual operating income from the expansion is $1,658,404 and the depreciation has been calculated as $962,500. Calculate the ARR. Round to two decimal places. ARR % Data table - X Number of additional skiers per day Average number of days per year that weather conditions allow skiing at White Valley 116 skiers 143 days Useful life of expansion (in years) Average cash spent by each skier per day 12 years 235 Average variable cost of serving each skier per day 77 Cost of expansion 12,500,000 Discount rate 8%