Consider how cherry valley a popular ski resort could use capital budgeting to decide whether the $8 million spring park lodge expansion would be a good investment Requirement 1 average annual net cash flow Requirement 2 compute the average annual operating income from the expansion Requirement 3 compute the payback period Requirement 4 compute the ARR Data table Assume the cherry valleys managers developed the following estimates concerning a planned expansion to it spring park lodge(all numbers assumed) Number of additional skiers per day 121 Average number of days per year whether conditions allow skiing at cherry valley 160 useful life expansion in years 8 Average cash spend by each skier per day 243 Average variable cost of serving each skier per day 144 Cost expansion 8000000 Discount rate 10%