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	$	3,450,000
Discount rate		10	%
Useful life		20
Annual rental income	$	1,500,000
Annual operating expenses	$	1,050,000

Robertson uses straight-line depreciation and the lodge expansion will have a residual value of $2,200,000.

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.)