Consider how White 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 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 $850,000 at the end of its twelve-year life. The average annual operating income from the expansion is $1,676,186 and the depreciation has been calculated as $1,012,500. Calculate the ARR. Round to two decimal places. Data Table ARR 119 skiers + 143 days Number of additional skiers per day Average number of days per year that weather conditions allow skiing at White 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 12 years 245 $ 87 13,000,000 12% Consider how White 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 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 $850,000 at the end of its twelve-year life. The average annual operating income from the expansion is $1,676,186 and the depreciation has been calculated as $1,012,500. Calculate the ARR. Round to two decimal places. Data Table ARR 119 skiers + 143 days Number of additional skiers per day Average number of days per year that weather conditions allow skiing at White 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 12 years 245 $ 87 13,000,000 12%