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Consider how White Valley River Park Lodge could use capital budgeting to decide whether the $12,000,000 River Park Lodge expansion would be a good investment. Assume White Valley's managers developed the following estimates concerning the expansion: (Click the icon to view the estimates.) Assume that White Valley uses the straight-line depreciation method and expects the lodge expansion to have a residual value of $750,000 at the end of its eight-year life. The average annual operating income from the expansion is $1,242,396 and the depreciation has been calculated as $1,406,250. Calculate the ARR. Round to two decimal places. Average annual operating income 11 Average amount invested = ARR i Data Table 117 skiers Number of additional skiers per day Average number of days per year that weather conditions allow skiing at White Valley Useful life of expansion (in years) Average cash spent by each skier per day Average variable cost of serving each skier per day Cost of expansion Discount rate 147 days 8 years 236 82 12,000,000 14% Print Print Done Done Choose from any list or enter any number in the