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 Discount rate Useful life Annual rental income Annual operating expenses $3,500,000 ox 2e $1,450,000 $1,000,000 Robertson uses straight-line depreciation and the lodge expansion will have a residual value of 52,160,000 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. Euture Value Annuity of 51. Present Vale Annuity of S1/(Use oppropriate factor(s) from the tables provided. Do not round Intermediate calculations. Round your final onswer to nearest whole dollar amount.) Robertson uses straight-line depreciation and the lodge expansion will have a residual value of $2,160,000 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(e) from the tables provided. Do not round intermediate calculations. Round your final answer to nearest whole dollar amount) 15.45 1. Annual Operating Incomo 2 Annual Net Cash flow 3 ARR 4. Payback Period 5 NPV years TABLE MA Future Value of $1 Periode 2% 3% 3.70% 4.29% OX OX 7% 8% o 10000 10000 10000 10000 10000 10000 10000 10000 10000 1 10200 10300 10375 10400 1.0425 10500 10600 10700 10800 2 10404 10609 10764 10816 10868 1.1025 11236 1.1449 11664 3 1.0612 10927 11168 11249 11330 11576 1.1910 12250 1.2597 4 10824 11255 11587 11699 11811 12155 12625 1.3108 13605 5 11041 11593 12021 12167 12313 12763 13382 14026 1.4693 6 11262 11941 12472 12653 12837 13401 14185 15007 15869 7 1.1487 1229912939 13159 13382 14071 15036 16058 17138 8 12668 13425 13686 13951 14775 15938 17182 18509 11951 13048 13928 14233 4544 1.5513 16895 18385 1.9990 12190 13439 14450 14802 15162 16289 12906 19672 21589 20 14859 18061 20882 21911 2.2989 2.65333 2071 3 8697 46610 Periods 10% 11% 12% 13N 15% 204 25% 10000 10000 10000 10000 10000 1000 10000 1300 11300 11100 11500 1 2000 12500 1232432544 14019 14429 4815 4 hi 167 T4 1973520520 21950 2272 23045 24782658442998 30 TABLE LZA Present Value of $1 Periods 2.75% 4% 20% DX 0% 7% 8% 1 0.9804 09709 0.9639 09615 0.9592 0.9524 0.9434 09346 0.9259 2 0.9612 0.9426 0.9290 0.9246 0.9201 0.9070 0.8900 0.8734 0.8573 3 0.9423 0.9151 0.8954 0.8890 0.8826 0.8638 0.8396 0.8163 0.7938 4 0.9238 0.8885 0.8631 0.8548 0.8466 0.8227 0.7921 07629 07350 5 0.9057 0.8626 0.8319 0.8219 0.8121 0.7835 07473 0.7130 0.6806 6 0.8880 0.8375 0.8018 07903 0.7790 0.7462 07050 0.6663 06302 7 0.8706 0.8131 0.7728 0.7599 0.7473 0.7107 0.6651 06227 0.5835 8 0.8535 0.7894 07449 0.7307 07168 0.6768 0.6274 0.5820 0.5403 9 08368 0.7664 07180 07026 06876 06446 0.5919 05439 05002 10 0.8203 0.7441 0.6920 0.6756 0.6595 0.6139 0.5584 0.5083 0.4632 20 06730 0.5537 0.4789 04564 0.4350 0.3769 0.3118 02584 0 2145 Periods 9% 10% 11% 12% 13% 14% 15% 20% 25% 1 0.9174 0.9091 0.9009 0.8929 0.8850 0.8772 0.8696 08333 0.8000 2. 0.8417 0.8264 0.8116 07972 07831 0.7695 0756106944 06400 0.7722 07513 07312 07118 06931 0.6750 0.6575 0.5787 0.5120 4 07084 0.683006587 06355 06133 0.5921 0.5718 0.4823 04096 5 06499 06209 0.5935 05674 0.5428 0.5194 04972 0.4019 03277 6 0.5963 05645 05346 05066 0.4803 0.4556 0.4323 03349 0.2621 7 0.5470 0.5132 0.4817 0.4523 0.4251 03996 0.375902791 0 2097 8 0.50190.4665 0.4339 04039 03762 03506 0.3269 0 2326 0.1678 9 04604 04241 03909 0.3606 03329 03075 028430193801342 10 0.4224 0.3855 0.3522 0.322002946 0.2697 0.2472 0.1515 0.1074 20 0.1784 01485 01240 0.103700868 00728 010611 00261 00119 TABLE 1.3A Future Value of an Annuity of $1 Parlods" 2% 3.75% 425% 5% 7X 8% 1 1.0000 1.0000 10000 10000 1.0000 10000 10000 10000 1.0000 2 20200 20300 2.0375 2.0400 20425 20500 2.0600 20700 2.0800 3 3.0604 3.0909 31139 3.1216 3.1293 3.1525 3.1836 32149 32464 4.1216 4.1836 42307 4.2465 4.2623 4.3101 4.3746 4.4399 4.5061 5 5 2040 5.3091 5.3893 5.4163 5.4434 55256 5.6371 5.7507 5.8666 6 6.3061 6.4684 6.5914 6.6330 66748 6.8019 6.9753 7.1533 73359 7 74343 76625 78386 78983 79585 8.1420 8.3938 86540 8.9228 8 8.5830 8.8923 9.1326 9.2142 9.2967 9.5491 9.8975 10.2598 10.6366 9 97546 10.1591 10 4750 10.5828 106918 11.0266 11.4913 11.9780 12.4876 10 10.9497 11.4639 11.8678 12.0061 12.1462 12 5779 13.1808 13.8164 14.4866 20 24 2974 26.8704 29.0174 297781 30.5625 330660 36.7856 40 9955 45 7620 Periods 9% 10% 11% 12% 13% 14% 15% 20% 25% 10000 10000 10000 10000 10000 10000 10000 10000 10000 28400 1500 2 2 0900 2.1000 21100 2.1200 21300 2.2000 2 2500 3 3.2781 3.3100 33421 3.3744 3.4069 3.4396 34725 35400 3.8125 4 4.5731 46410 4.7097 4.7793 4.8498 49211 49934 5.3680 5.7656 $9847 6:1051 6 2278 16 3528 6.4803 5.6101 67424 74416 8 2070 6 75233 77156 79129 8 1152 83227 85355 87537 9.9299 11 2588 9.2004 94872 9.7853 10.0890 10:4047 10.7305 110568 129159 15.0735 116285 114359 118594 12 2997 127573132378 1517250 19 8419 13.0210 13.5975 141540 44 7757154157 15.08531 16.7856207989 25 8023 10 151929 159374 167220. 125457 R15 1983725587382529 511605722750 64 2028 720524 B09468 102491020143686683027 TABLE 11AA Present Value of Annuity of $1 Periods 3% 1 0.9804 0.9709 2.73% 4% 4.29% 5% 7% 0.9639 0.9615 0.9592 0.9524 0.9434 09346 0.9259 1.8929 1.8861 18794 18594 18334 18080 17893 27883 27751 27620 27232 26730 26243 25771 2 19416 1.9135 3 28839 2.8286 4 3.8077 3.7171 3.6514 3.6299 36086 35460 34651 3.3872 3.3121 5 4.7135 4.5797 4.4833 4.4518 4.4207 4329542124 41002 3.9927 6 5.6014 5.4172 5.2851 52421 5.1997 5.0757 49173 47665 46229 7 6.4720 6.2303 505796.0021 5.9470 5.7864 5.5824 5.3893 5 2064 8 73255 7019 6.B028 6.7327 6.6638 6.4632 62098 5.9713 57466 9 8.1622 77861 7520B 74353 73513 21078 6.8017 6.5152 6 2469 10 8.9826 85302 82128 81109 80109 7.7217 73601 70236 67101 20 16.3514 14.8775 13.8962 13.5903 13.2944 12.4622 114699 10.5940 9.8181 Periods 9% 10% 119 12% 13% 15% 20% 25% 1 0.9174 09091 0.90090.8929 08550 0.8772 0.8696 0.8333 0.8000 2 1.7591 17355 17125 16901 16681 16467 1.6257 1.527814400 3 25313 24869 24437 24018 23612 23216 22832 21065 19520 32397 31699 31024 30373 29745 2.9137 28550 25887 2.3616 5 3.8897 3.7908 36959 3.6048 3.5172 3 4331 33522 2.9906 26893 3.9975 3.8887 3.7845 33255 29514 6 4.485943553 4.2305 4.1154 2 5033048684 47122 4.5638 44226 42883 4160436046 3.1611 9 55348 53349 5:1451 4.96764798846389 4497338372 33289 9 5.9952 57590 55370 5 3282 51317 49464 47716403103 4631 10 6.4177 6.1446 5 8892 565025262 S1216 50188 41925 35705 20 91285 85036 79593 74594 70248 8623162595 49696 3939