Question: Conaider how duda Valley Stream Park Lodge could use captal budgeting to decibe whether the 511,500,000 Stream Park Lodge expansion would be a good investment.

Conaider how duda Valley Stream Park Lodge could use captal budgeting to decibe whether the 511,500,000 Stream Park Lodge expansion would be a good investment. Assume duda Valby's managers developed the following estimatos conceming the expansion. (Cick the icon to view the estimales.) Assume that Juda Valey uses the straght-line depreciotion method and expects the lodge exponsion to have a residual value of 8950,000 at the end of its ton-year ife. The averape annual operabing inoome from the exparsion is $1,680,640 and the depreciation has been calculated as $1,055,000. Calailate the ARR. Round to two decimal places. Number of additional skiers per day Average number of days per year that weather conditions allow skiing at Juda 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
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