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X Data Table Number of additional skiers per day 117 skiers Average number of days per year that weather conditions 142 days 10 years allow

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X Data Table Number of additional skiers per day 117 skiers Average number of days per year that weather conditions 142 days 10 years allow skiing at Kyler 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 $ 245 86 12,000,000 Discount rate 14% Print Done Consider how Kyler Valley Spring Park Lodge could use capital budgeting to decide whether the $12,000,000 Spring Park Lodge expansion would be a good investment. Assume Kyler Valley's managers developed the following estimates concerning the expansion: Click the icon to view the estimates.) Assume that Kyler Valley uses the straight-line depreciation method and expects the lodge expansion to have a residual value of $850,000 at the end of its ten-year life. The average annual operating income from the expansion is $1,526,626 and the depreciation has been calculated as $1.115,000. Calculate the ARR. Round to two decimal places. ARR % Consider how Kyler Valley Spring Park Lodge could use capital budgeting to decide whether the $12,000,000 Spring Park Lodge expansion would be a good investment. Assume Kyler Valley's managers developed the following estimates concerning the expansion: Click the icon to view the estimates.) Assume that Kyler Valley uses the straight-line depreciation method and expects the lodge expansion to have a residual value of $850,000 at the end of its ton-year life. The average annual operating income from the expansion is $1,526,626 and the depreciation has been calculated as $1,115,000 Calculate the ARR. Round to two decimal places. ARR % Amount invested Annual depreciation Average amount invested Average annual net cash inflow Average annual operating income Residual value esc

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