Consider how Root Valley Brook Park Lodge could use capital budgeting to decide whether the $11,500,000 Brook Park Lodge expansion would be a good moment. Assume Roof Valley's managers developed the following estimates concerning the expansion Click the icon to view the estimaton) Assume that Root Valley uses the straight line depreciation method and expects the lodge expansion to have a residual value of $750,000 at the end of is eight your life. The average annual operating income from the expansion is 51.499,350 and the depreciation has been calculated as 51,343,750. ARR 117 skiers 150 days 8 years Number of additional skiers per day Average number of days per year that weather conditions allow skiing at Root 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 244 82 11,500,000 8%