Consider how Root Valley Spring Park Lodge could use capital budgeting to decide whether the $12,500,000 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 $950,000 at the end of its eight-year life. The average annual operating income from the expansion is $1,334,206 and the depreciation has been calculated as $1,443,750. Calculate the ARR. Round to two decimal places. Average annual operating income + Average amount invested 11 ARR 11 % Choose from any list or enter any number in the input fields and then click Check Answer. Print Clear All Check Answer equired) - Data Table 118 skiers 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 149 days 8 years $ 242 84 12,500,000 Discount rate 8% Print Done m any list or enter any number in the input fields and then click Check