Question
pls can someone help me Assume that Golden Valley managers developed the following estimates concerning a planned expansion to its Spring Park Lodge (all numbers
pls can someone help me
Assume that Golden Valley managers developed the following estimates concerning a planned expansion to its Spring
Park Lodge (all numbers assumed):
Number of additional skiers per day. . . . . . . . . . . . . . . . . | 123 |
Average number of days per year that weather | |
conditions allow skiing at Golden Valley. . . . . . . . | 159 |
Useful life of expansion (in years). . . . . . . . . . . . . . . . . . . | 9 |
Average cash spent by each skier per day. . . . . . . . . . . | $246 |
Average variable cost of serving each skier per day. . . . | $144 |
Cost of expansion. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | $9,000,000 |
Discount rate. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 12% |
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 | ||||||
x | = | net cash inflow | ||||
x | = |
Requirement 2. Compute the average annual operating income from the expansion.
First enter the formula, then compute the average annual operating income from the expansion. (Round your answer to the nearest dollar.)
Average annual operating | ||||||
= | income from asset |
= |
Requirement 3. Compute the payback period.
First enter the formula, then compute the payback period. (Enter amounts in dollars, not millions. Round your answer to two decimal places.)
/ | = | Payback period |
/ | = | years |
Requirement 4. Compute the ARR.
First enter the formula, then compute the accounting rate of return. (Enter amounts in dollars, not millions. Enter your answer as a percent rounded to two decimal places.)
Accounting | ||||||
/ | = | rate of return |
/ | = | % |
Choose from any list or enter any number in the input fields and then continue to the next question.
Requirements
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. |
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