Consider how Root Valley Stream Park Lodge could use capital budgeting to decide whether the $13,500,000 Stream Park Lodge expansion would be a good investment. Assume Root Valley's managers developed the concerning the expansion: (Click the icon to view the estimates.) Read the requirements. Data table 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 Number of additional skiers per day 118 skiers Average number of days per year that weather conditions allow skiing at Root Valley 143 days Useful life of expansion (in years) 10 years Average cash spent by each skier per day $ 246 Average variable cost of serving each skier per day 75 Cost of expansion Discount rate 13,500,000 10% Assume that Root Valley uses the straight-line depreciation method and expects the lodge expansion to have a residual value of $500,000 at the end of its ten-year life. Print Done