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 Useful life Annual rental incone $3,220,000 20 $2,050,000 $1,600,000 Annual operating expenses 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. (Euture Value of $1. Present Value of $1. Euture Value Annuity of $1. Present Value Annuity of $1) (Use apprepriate factor(s) from the tables provided. Do not round intermediate calculations. Round your final answer to nearest whole

A budget can be defined as a financial plan designed by an undertaking for a definite period in the future that can contribute towards enhancing the financial success of the business undertaking. It is used to estimate the revenue and expenses. The budge…