Robertson Resorts is considering whether to expand its Pagosa Springs Lodge. The expansion will create 24 additional rooms for rent. The following estimates are available:

Cost of expansion	$ 3,540,000
Discount rate	10%
Useful life	20
Annual rental income	$ 1,350,000
Annual operating expenses	$ 900,000

Robertson uses straight-line depreciation and the lodge expansion will have a residual value $2,080,000.

Required:

1. Calculate the annual net operating income from the expansion.
2. Calculate the annual net cash inflow from the expansion.
3. Calculate the ARR (Round your answer to 2 decimal places)
4. Calculate the payback period (Round your answer to 1 decimal place.)
5. Calculate the NPV. (Future Value of $1,Present Value of $1, Future Value Annuity of $1, Present Value Annuity of $1.)

Note: Use appropriate factor(s) from the tables provided. Do not round intermediate calculations. Round your final answer to nearest whole dollar amount.

\begin{tabular}{|l|l|l|} \hline 1. Annual Operating Income & & \\ \hline 2. Annual Net Cash Inflow & & \\ \hline 3. ARR & & % \\ \hline 4. Payback Period & & years \\ \hline 5. NPV & & \\ \hline \end{tabular}