Consider how White Valley Waterfall Park Lodge could use capital budgeting to decide whether the $13,000,000 Waterfall 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 ten-year life. The average annual operating income from the expansion is $1,307,560 and the depreciation has been calculated as $1,205,000. Calculate the ARR. Round to two decimal places. ARR % 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 114 skiers 145 days 10 years 240 88 13,000,000 8%