Please do requirements.

Consider how Smith Valley Spring Park Lodge could use capital budgeting to decide whether the $12,500,000 Spring Park Lodge expansion would be a good investment. Assume Smith Valley's managers developed the following estimates concerning the expansion: Click the icon to view the estimates.) (Click the icon to view additional information.) Read the requirements. Requirement 1. Will the payback change? Explain your answer. Recalculate the payback if it changes. Round to one decimal place. Select the formula to calculate the payback period. Amount invested Expected annual net cash inflow Payback The payback will continue to be years. The residual value affects the computation of the payback and the payback method does not consider cash flows that occur after the payback period. 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 Smith Valley screens its potential capital investments using the following decision criteria: Maximum payback period 5.2 years Minimum accounting rate of return 16.95% Will Smith Valley consider this project further or reject it? Data Table 119 skiers Number of additional skiers per day Average number of days per year that weather conditions allow skiing at Smith 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 147 days 10 years 246 78 12,500,000 8% More Info 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 26.62%, the average annual operating income to be $1,763,824, the average amount invested to be $6,625,000, and the average annual net cash inflow to be $2,938,824 Assume that Smith Valley uses the straight-line depreciation method and now expects the lodge expansion to have zero residual value at the end of its ten-year life