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........ -please help me on this, everything is provided Consider how Star Valley, a popular ski resort, could use capital budgeting to decide whether the

........
-please help me on this, everything is provided
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Consider how Star Valley, a popular ski resort, could use capital budgeting to decide whether the $9.5 million Snow Park Lodge expansion would be a good investment Click the icon to view the expansion estimates.) Assume that Star Valley uses the straight-line depreciation method and expects the lodge expansion to have a residual value of $850,000 at the end of its eight-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.) Average annual net cash inflow Requirements Data table 1. Compute the average annual net cash inflow from the expansion 2. Compute the average annual operating income from the expansion. 3. Compute the payback period. 4. Compute the ARR. Assume that Star Valley's managers developed the following estimates conceming a planned expansion to its Snow Park Lodge (all numbers assumed): Number of additional skiers per day... 124 Average number of days per year that weather conditions allow skiing at Star Valley... 159 Useful life of expansion (in years) Average cash spent by each skler per day..... Average variable cost of serving each skier per days 134 Cost of expansion $ 9,500,000 Discount rate 10% 8 Print Done 246

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