Consider how Hunter Valley, a popular ski resort, could use capital budgeting to decide whether the $9 million River Park Lodge expansion would be a good investment. Assume that Hunter Valley uses the straight-line depreciation method and expects the lodge expansion to have a
Assume that Hunter Valley's managers developed the following estimates concerning a planned expansion to its River Park Lodge(all numbers assumed):
Number of additional skiers per day 122
Average number of days per year that weather
conditions allow skiing at Flint Valley 162
Useful life of expansion (in years) 9
Average cash spent by each skier per day $245
Average variable cost of serving each skier per day $142
Cost of expansion $9,000,000
Discount rate 12%
residual value of $500,000 at the end of its nine-year life. Requirement 1. Compute the average annual net cash inflow from the expansion. 2. Compute the average annual operating income from the expansion. First enter the? formula, then compute the average annual operating income from the expansion.? (Round your answer to the nearest? 3. Compute the payback period. 4. Compute the ARR.

Nell and kirby are in the process of negotiating their divorce agreement. what should be the tax consequences to nell and kirby if the following, considered individually, became part of the agreement? a. in consideration for her one-half interest in their personal residence, kirby will transfer to nell stock with a value of $200,000 and $50,000 of cash. kirby's cost of the stock was $150,000, and the value of the personal residence is $500,000. they purchased the residence three years ago for $300,000.nell's basis for the stock is $ xkirby's basis in the house is $ xb. nell will receive $1,000 per month for 120 months. if she dies before receiving all 120 payments, the remaining payments will be made to her estate. the payments (qualify, do not qualify) as alimony and are (included in, excluded from) nell's gross income as they are received. c. nell is to have custody of their 12-year-old son, bobby. she is to receive $1,200 per month until bobby (1) dies or (2) attains age 21 (whichever occurs first). after either of these events occurs, nell will receive only $300 per month for the remainder of her life.$ x per month is alimony that is (included in, excluded from) nell's gross income, and the remaining $ x per month is considered (child support, property settlement) and is (nontaxable, taxable) to nell.