robertson resorts is considering whether to expand its pagosa springs lodge. the expansion will create 24 additional rooms for rent. the following estimates are available: cost of expansion $ 3,310,000 discount rate 9% useful life 20 annual rental income $ 1,900,000 annual operating expenses $ 1,450,000 robertson uses straight-line depreciation and the lodge expansion will have a residual value $2,520,000.