Saved obertson Resorts is considering whether to expand their Pagosa Springs Lodge. The expansion wil ent. The following estimates are available: $3,180,000 100 Cost of expansion Discount rate Useful life Annual rental income Annual operating expenses 20 $1,950,000 $1,500,000 Robertson uses straight-line depreciation and the lodge expansion will have a residual value of $2,5 Required: . Calculate the annual net operating income from the expansion. 2. Calculate the annual net cash inflow from the expansion. 7. Calculate the ARR. (Round your answer to 2 decimal places.) Calculate the payback period. (Round your answer to 1 decimal place.) Calculate the NPV. (Future Value of $1. Present Value of $1. Future Value Annuity of $1. Present Valu ppropriate factor(s) from the tables provided. Do not round intermediate calculations. Round you lollar amount.) $ 1. Annual Operating Income 2. Annual Net Cash Inflow 3. ARR 4. Payback Period 5 NPV 481,000 15.13% 6.6 years 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: $3,180,000 100 Cost of expansion Discount rate Useful life Annual rental income Annual operating expenses $1,950,000 $1,500,000 Robertson uses straight-line depreciation and the lodge expansion will have a residual value of $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. (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$ 1. Annual Operating Income 2. Annual Net Cash Inflow 3. ARR 4. Payback Period 5 NPV 450,000 481,000 15.13% 6.6 years