Consider how White Valley Stream Park Lodge could use capital budgeting to decide whether the $12,500,000 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.) Read the requirements Requirement 1. Compute the average annual net cash inflow from the expansion. Data Table The average annual net cash inflow from the expansion is 119 skiers 152 days 8 years 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 $ 236 - X Requirements 75 12,500,000 8% 1. Compute the average annual net cash inflow from the expansion. 2. Compute the average annual operating income from the expansion. Assume that White 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 eight-year life. Print Done Print Done