chapter 12 Homework Question 4, E12-34A (similar to) HW Score: 0%, 0 of 10 points Save Part 1 of 7 O Points: 0 of 2 Consider how Cherry Valley, a popular ski resort, could use capital budgeting to decide whether the Assume that Cherry Valley uses the straight-line depreciation method and expects the lodge K $9.5 million Blizzard Park Lodge expansion would be a good investment. expansion to have a residual value of $600,000 at the end of its ten-year life. EE(Click the icon to view the expansion estimates ) Read the requirements Requirement 1. Compute the average annual net cash inflow from the expansion. First enter the formula, then compute the average annual net cash inflow from the expansion (Round your answer to the nearest Data table Average annual net cash inflow Assume that Cherry Valley's managers developed the following estimates concerning a planned expansion to its Blizzard Park Lodge (all numbers assumed). Number of additional skiers per day . . . . . . . . . . . . . .. 118 X Requirements Average number of days per year that weather conditions allow skiing at Cherry Valley . . . . ... 156 Useful life of expansion (in years) . . 10 1. Compute the average annual net cash inflow from the expansion. Average cash spent by each skier per day . . . 247 2. Compute the average annual operating income from the expansion. Average variable cost of serving each skier per day . $ 136 3. Compute the payback period. Cost of expansion . .. . . S 9,500,000 A. Compute the ARR Discount rate . . . . . 14% Print Done Print Done Video Get more help - Crcar an 8:40 PM 10/7/2022