Maggie's Resorts was wondering how to use capital budgeting to decide if their $7,985,000 expansion of its number of bungalows is a good investment. Management for Maggie's Resorts developed the following estimates for the expansion: Maggie's Resorts uses straight-line depreciation and expects the expansion to have a residual value of $1,085,000 at the end of its 12 year life. (Round your answers to two decimal places when needed and use rounded answers for all future calculations). 1. Compute the average annual net cash flow from the expansion. 2. Compute the average annual operating income from expansion. 3. Compute the payback for the expansion project. 4. Calculate the ARR. 3. Compute the payback for the expansion project. 4. Calculate the ARR