Robertson Resorts is considering whether to expand their Pagosa Springs Lodge. The expansion will create 24 additional rooms for rent. The following estimates are available: Cost of expansion $3, 220, 000 Discount rate 9% Useful life 20 Annual rental income $2, 050, 000 Annual operating expenses $1, 600, 000 Robertson uses straight-line depreciation and the lodge expansion will have a residual value of $2,640,000. 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.) (Use appropriate factor(s) from the tables provided. Do not round intermediate calculations. Round your final answer to nearest whole dollar amount.) 1 . Annual Operating Income 2. Annual Net Cash Inflow 3. ARR % 4. Payback Period years 5 NPV