Question

Refer to the Stenback Valley Snow Park Lodge expansion project in Short Exercise S26-4. Calculate the ARR. Round to two decimal places.
Number of additional skiers per day.............................................. 116 skiers
Average number of days per year that weather conditions
allow skiing at Stenback Valley.................................................... 143 days
Useful life of expansion (in years)................................................. 8 years
Average cash spent by each skier per day..................................... $ 244
Average variable cost of serving each skier per day..................... 82
Cost of expansion.......................................................................... 11,000,000
Discount rate................................................................................. 12%


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  • CreatedJune 15, 2015
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