Homework: Ch.11 Learning Objective 2 Question 4, SM11-4 (similar to) Part 2 of 2 HW Score: 51.28%, 20 of 39 points Points: 0 of 4 Save Consider how Cole Valley Brook Park Lodge could use capital budgeting to decide whether the $12,500,000 Brook Park Lodge expansion would be a good investment Assume Cole 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 $2.830,563 Requirement 2. Compute the average annual operating income from the expansion. The average annual operating income from the expansion is Requirements 1. Compute the average annual net cash inflow from the expansion 2. Compute the average annual operating income from the expansion Data table Number of additional skiers per day Average number of days per year that weather conditions allow skiing at Cole Valley Useful life of expansion (in years) Average cash spent by each skier per day 121 skiers 149 days 10 years $ 237 Average variable cost of serving each skier per day 80 Cost of expansion 12,500,000 10% Discount rate Assume that Cole 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 ten-year- life. Print Done X Print Done