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Please give calculations and answer all parts just like in the example. will upvote! Example- Problem- HW Score: 37.66%, 4.14 of 11 points Homework: Chp.
Please give calculations and answer all parts just like in the example. will upvote!
HW Score: 37.66%, 4.14 of 11 points Homework: Chp. 11 Hmwk Question 3, SM11-6 (similar to) Points: 0 of 1 Save Consider how Juda Valley Stream Park Lodge could use capital budgeting to decide whether the $12,000,000 Stream Park Lodge expansion would be a good investment. Assume Juda Valley's managers developed the following estimates concerning the expansion: (Click the icon to view the estimates.) Assume that Juda Valley uses the straight-line depreciation method and expects the lodge expansion to have a residual value of $950,000 at the end of its eight-year life. The average annual operating income from the expansion is $1,603,114 and the depreciation has been calculated as $1,381,250. Calculate the ARR. Round to two decimal places. Average annual operating income Average amount invested ARR 24.76 % 1,603,114 6,475,000 Data table. Number of additional skiers per day Average number of days per year that weather conditions allow skiing at Juda 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 Print Done 122 skiers 151 days 8 years 241 79 12,000,000 12% X HW Score: 37.66%, 4.14 of 11 points Question 3, SM11-6 (similar to) = Homework: Chp. 11 Hmwk Points: 0 of 1 Save Consider how Preston Valley River Park Lodge could use capital budgeting to decide whether the $11,000,000 River Park Lodge expansion would be a good investment. Assume Preston Valley's managers developed the following estimates concerning the expansion: (Click the icon to view the estimates.) Assume that Preston Valley uses the straight-line depreciation method and expects the lodge expansion to have a residual value of $1,000,000 at the end of its eight-year life. The average annual operating income from the expansion is $1,408,952 and the depreciation has been calculated as $1,250,000. Calculate the ARR. Round to two decimal places. = ARR M % Data table Number of additional skiers per day Average number of days per year that weather conditions allow skiing at Preston 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 Print Done 116 skiers 146 days 8 years 244 87 11,000,000 10% Example-
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