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	$ 3,180,000
Discount rate	10%
Useful life	20
Annual rental income	$ 1,950,000
Annual operating expenses	$ 1,500,000

Robertson uses straight-line depreciation and the lodge expansion will have a residual value $2,560,000.

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.

Note: Round your answer to 2 decimal places.

1. Calculate the payback period.

Note: Round your answer to 1 decimal place.

1. 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.