Consider how Root Valley Spring Park Lodge could use capital budgeting to decide whether the $13,500,000 Spring Park Lodge expansion would be a good investment. Assume Root Valley's managers developed the following estimates concerning the expansion: (Click the icon to view the estimates.) 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 its twelve-year life. The average annual net cash inflow from the expansion is expected to be $2,703,190 Compute the payback for the expansion project. Round to one decimal place. Payback - years Data table 115 skiers 146 days 12 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 $ 240 79 13,500,000 8% Print Done