HWA - 3. please help

Consider how Smith 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 Smith Valley's managers developed the following estimates concerning the expansion Click the icon to view the estimates) Assume that Smith 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 ten-year life. The average annual operating income from the expansion is $1,485,924 and the depreciation has been calculated as $1,155,000 Calculate the ARR. Round to two decimal places ARR % - - X bpansion would be a good Smith Valley Strel ssume Smith Valle icon to view the e Data table 114 skiers $0,000 at the end of its .155,000 Smith Valley uses The average annu ARRIRound to the 143 days Number of additional skiers per day Average number of days per year that weather conditions allow skiing at Smith 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 10 years 246 S 84 12.500.000 14% Print Done