Naat the thanking Requirements 1. Will the payback change? Explain your answer. Recalculate the payback if it changes. Round to one decimal place. 2. Will the project's ARR change? Explain your answer. Recalculate ARR if it changes. Round to two decimal places. 3. Assume McKnight Valley screens its potential capital investments using the following decision criteria: Will McKnight Valley consider this project further or reject it? Data table Under the assumption that the expansion would have a residual value of $750,000, the managers calculated the payback period to be 4.3 years, the ARR to be 21.39%, the average annual operating income to be $1,256,714, the average amount invested to be $5,875,000, and the average annual net cash inflow to be $2,537,964. Assume that McKnight Valley uses the straight-line depreciation method and now expects the lodge expansion to have zero residual value at the end of its eight-year life