Data table when the More info Under the assumption that the expansion would have a residual value of $850,000, the managers calculated the payback period to be 5.1 years, the ARR to be 20.89%, the average annual operating income to be $1,498,904, the average amount invested to be $7,175,000, and the average annual net cash inflow to be $2,648,904 Assume that Cole Valley uses the straight-line depreciation method and now expects the lodge expansion to have zero residual value at the end of its eleven-year life. Consider how Cole Valley Spring Park Lodge could use capital budgeting to decide whether the $13,500,000 Spring Park Lodge (Click the icon to view the estimates.) (1) (Click the icon to viow additional information.) Read the requirements Requirement 1. Wil the payback change? Explain your answer Rocalculate the payback if it changes Round to one decimal plac Select the lormula to calculate the payback period Amount invested Expected annual not cash intlow The payback will years: The residual value the computation of the payback and the payback method Requirement 2. Will the project's ARR change? Exolain your cash flows that o Data table when the More info Under the assumption that the expansion would have a residual value of $850,000, the managers calculated the payback period to be 5.1 years, the ARR to be 20.89%, the average annual operating income to be $1,498,904, the average amount invested to be $7,175,000, and the average annual net cash inflow to be $2,648,904 Assume that Cole Valley uses the straight-line depreciation method and now expects the lodge expansion to have zero residual value at the end of its eleven-year life. Consider how Cole Valley Spring Park Lodge could use capital budgeting to decide whether the $13,500,000 Spring Park Lodge (Click the icon to view the estimates.) (1) (Click the icon to viow additional information.) Read the requirements Requirement 1. Wil the payback change? Explain your answer Rocalculate the payback if it changes Round to one decimal plac Select the lormula to calculate the payback period Amount invested Expected annual not cash intlow The payback will years: The residual value the computation of the payback and the payback method Requirement 2. Will the project's ARR change? Exolain your cash flows that o