K Consider how Soar Mountain, a popular ski resort, could use capital budgeting to decide whether the $9.5 million State Park Lodge expansion would be a good investment. (Click the icon to view the expansion estimates.) Number of ski days per year Requirement 1. Compute the average annual net cash inflow from the expansion. First enter the formula, then compute the average annual net cash inflow from the expansion. (Round your answer to the nearest dollar.) X Average annual net cash inflow www Assume that Soar Mountain uses the straight-line depreciation method and expects the lodge expansion to have a residual value of $700,000 at the end of its 10-year life. Read the requirements. 1 Average net cash inflow per day Requirement 2. Compute the average annual operating income from the expansion. First enter the formula, then compute the average annual operating income from the expansion. (Round your answer to the nearest dollar.) Annual depreciation expense Average annual net cash inflow = Average annual operating income from asset

Consider how Soar Mountain, a popular ski resort, could Assume that Soar Mountain uses the straight-line use capital budgeting to decide whether the $9.5 milion depreciation method and expects the lodge State Park Lodge expansion would be a good investment. expansion to have a residual value of $700,000 at (Click the icon to view the expansion estimates.) the end of its 10-year life. Read the requirements. Requirement 1. Compute the average annual net cash inflow from the expansion. First enter the formula, then compute the average annual net cash inflow from the expansion. (Round your answer to the nearest dollar.) Requirement 2. Compute the average annual operating income from the expansion. First enter the formula, then compute the average annual operating income from the expansion. (Round your answer to the nearest dollar.) First enter the formula, then compute the payback period. (Enter amounts in dollars, not millions. Round your answer to two decimal places.) ]=Paybackperiod=years Requirement 4. Compute the ARR. First enter the formula, then compute the accounting rate of return. (Enter amounts in dollars, not millions. Enter your answer as a percent rounded to two decimal places.) Accounting =rateofreturn= Data table