Consider how Root Valley Waterfall Park Lodge could use capital budgeting to decide whether the $13,000,000 Waterfall 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 $1,000,000 at the end of its eight-year life. The average annual operating income from the expansion is $1,385,760 and the depreciation has been calculated as $1,500,000 Calculate the ARR. Round to two decimal places, Average annual operating incomo ARR Average annual net cash inflow 1385760 % tin Data table wo 120 skiers infl 144 days 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 8 years 242 75 13,000,000 14%