Robertson Resorts is considering whether to expand their Pagosa Springs Lodge. The expansion will create 24 additional rooms for rent. The following estimates are available: Cost of expansion Discount...

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Extracted text: Robertson Resorts is considering whether to expand their Pagosa Springs Lodge. The expansion will create 24 additional rooms for rent. The following estimates are available: Cost of expansion Discount rate $3,220,000 Useful life 20 Annual rental income Annual operating expenses $2,050,000 ॐ1, 600, 000 Robertson uses straight-line depreciation and the lodge expansion will have a residual value of $2,640,000. Required: 1. Calculate the annual net operating income from the expansion. 2. Calculate the annual net cash inflow from the expansion. 3. Calculate the ARR. (Round your answer to 2 decimal places.) 4. Calculate the payback period. (Round your answer to 1 decimal place.) 5. Calculate the NPV. (Future Value of $1. Present Value of S1, Euture Value Annuity of $1. Present Value Annuity of $1.) (Use appropriate factor(s) from the tables provided. Do not round intermediate calculations. Round your final answer to nearest whole dollar amount.) Answer is not complete. 450,000 474,167 O IS 1. Annual Operating Income 24 Annual Net Cash Inflow ARR 2. 13.98 3. 6.8 * years Payback Period NPV 4. * Prey 5 of 6 Next >