Consider how Root Valley Stream Park Lodge could use capital budgeting to decide whether the $$12,500,000$ Stream 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.$)$

Read the requirements.

Requirement $1.$ Compute the average annual net cash inflow from the expansion.

The average annual net cash inflow from the expansion is

Requirement $2.$ Compute the average annual operating income from the expansion.

The average annual operating income from the expansion is

Data table

$\backslash$table$[[$Number of additional skiers per day,$118$ skiers$],[$Average number of days per year that weather conditions,$149$ days$],[$allow skiing at Root Valley,$10$ years$],[$Useful life of expansion $($in years$),247],[$Average cash spent by each skier per day,$83],[$Average variable cost of serving each skier per day,$12,500,000$