Just need some help understanding this please

I will rate!

Many thanks and God bless!!!

Consider how Juda Valley River Park Lodge could use capital budgeting to decide whether the $12,000,000 River Park Lodge expansion would be a good investment. Assume Juda Valley's managers developed the following estimates concerning the expansion: (Click the icon to view the estimates.) Assume that Juda 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 eight-year life. The average annual operating income from the expansion is $1,337,860 and the depreciation has been calculated as $1,437,500. Calculate the ARR. Round to two decimal places. Amount invested - Residual value ARR % Suppose Preston Valley is deciding whether to purchase new accounting software. The payback for the $28,575 software package is three years, and the software's expected life is seven years. Preston Valley's required rate of return for this type of project is 14.0%. Assuming equal yearly cash flows, what are the expected annual net cash savings from the new software? Expected annual net cash inflow =