3 Water World is considering purchasing a water park in Atlanta, Georgia, for $1,820,000. The new facility will generate annual not cash inflows of $472,000 for eight years. Engineers estimate that the facility will remain useful for eight years and have no residual value. The company uses straight-line depreciation, and its stockholders demand an annual return of 12% on investments of this nature (Click the icon to view the Present Value of $1 table.) (Click the loon to view Prosent Value of Ordinary Annuity of $1 table.) (Click the icon to view Future Value of $1 table.) Click the icon to view Future Value of Ordinary Annuity of $1 table.) Read the requirements Requirement 1. Compute the payback, the ARR, the NPV, the IRR, and the profitability index of this itestment First, determine the formula and calculate payback. (Round your answer to one decimal place, X.X.) Payback = years Next, determine the formula and calculate the accounting rate of return (ARR) (Round the percentage to the nearest tenth percent, X.X%) ARR % Calculate the nel present value (NPV). (Enter any factor amounts to three decimal places, X.XXX) Net Cash Annuity PV Factor Present Years Inflow (1412%, 8) Value 1 - Present value of annuity Choose from any list or enter any number in the input fields and then continue to the next cuestion Water World is considering purchasing a water park in Atlanta, Georgia, for $1,820,000. The new facility will generate annual net cash inflows of $472,000 for eight years. Engineers estimate that the facility will remain useful for eight years and have no residual value. The company uses straight-line depreciation, and its stockholders demand an annual return of 12% on investments of this nature, (Click the icon to view the Present Value of $1 table.) (Click the icon to view Present Value of Ordinary Annuity of $1 table.) (Click the icon to view Future Value of $1 table.) (Click the icon to view Future Value of Ordinary Annuity of $1 table.) Read the requirements Years Inflow (1-12%, 8) Value 1.8 Present value of annuity 0 Investment Net present value of the investment The IRR Internal rate of retum) is between I Finally, determine the formula and calculate the profitability Index. (Round your answer to two decimal places, X.XX.) Profitability index als Requirement 2. Recommend whether the company should invest in this project. the operating life, the NPV is the profitability Recommendation Water World invest in the project because the payback period is index is one, and the ARR and IRR are the company's required rate of return stockholders demand an an (Click the icon to view the Present Value of $1 table.) (Click the icon to view Future Value of $1 table.) (Click the icon to view Future Value of Ordinary Annuit Read the requirements Value Inflow (i=12%, n=8) Years 1-8 Present value of annuity 0 Investment Net present value of the investment The IRR (internal rate of return) is between Finally, determine the formula and calculate dex. (Round your answer to two decimal places, X.XX.) 12-14% Profitability index es 14-16% . 16-18% Requirement 2. Recommend whether the c ivest in this project 18-20% Recommendation: Water World invest in the project because the payback period is index is one, and the ARR and IRR are the company's required rate of return. the operatir Choose from any list or enter any number in the input fields and then continue to the next question. sing a water park in Atlanta, Georgia, for $1,820,000. The new facility will generate annual net cash inflows of $ facility will remain useful for eight years and have no residual value. The company uses straight-line depreciatio turn of 12% on investments of this nature. sent Value of $1 table.) (Click the icon to view Present Value of Ordinary Annuity of $1 table.) Value of $1 table.) (Click the icon to view Future Value of Ordinary Annuity of $1 table.) bayba 0 Requirements d calc 1. Compute the payback, the ARR, the NPV, the IRR, and the profitability index of this investment. 2. Recommend whether the company should invest in this project. and cald X.X%.) Print Done value (NPV). Temer any factor amount to three decimar places Net Cash Present Annuity PV Factor (i=12%, n=8) Inflow Value ue of annuity 16 ME om 9 Present Value of 1 1 2% 0% TS 8 09800980 10% 671 54% 194 16% 092 20.543 03360826 20% 0.0003 0.925 SOT 000873 OST 09170909 0233 087700 0862 0341 13 0342 11092094501001040.5400M6OM Q 0.797 0.7600.1666743010 075 0961 0.904089 4 OM 0823 0.9 0.753 750.708 07120615 619 05 3 5 0.151 0.06 02 0.784 030 OTO 06 582 0.57204205 0.68100 0.56 0510 0417 0.476 0.437 0.400 2 998 0.750 0.741 0.06 0.666 0.933 0871 0.9130700 0.741 085 0.50 0.50 0.54 0.507 0.623 0.456 0432 041003700335 0853 0.789073 0677 0627 0.5830.54 0.513 0.450.400 0.300.354 0349 0582 140 9 0.5140057 0.766 0.705 01450582 0502 04 0.104 351 ONT 0.305 0286 0544 0.500 10 0.44 0.505 0.20 0.744 0.676 0.654 0024 0.23 0.225 0.550 9.508 0.46304222 0.270 0.24 0.2270 11 0.06 0.04 0.22 0.650.00022 0.495 12 DET TARTOL 0125 0557 0429 0.350 0.287 0.2370210.1960.135 0417 0.444 0.97 010310 13 0.773 0.581 601 0.530 0480 0.112 0.368 0.415 14 0.306 0.870 0.758 0.661 0572 50 92900223 0.160.145 0.116 000 0.442 290 15 0861 0.38 0.340 07430142 0.20 0.205 0.160 0.1410125 0.555 0.000.000 0.481 0417 DO 315 0.27 SO 0119 0084 16 0.72 0.3 0.33 0.21202120218 0.16 0.123 17 0.714 0.606 0.00 0.04 0513 04 0.371 031702 0.250 0.700 04 04160360 0.29 0.148 0.1000 0.000 0.000 0.15 50 19 0.250 0212 0415 0.50 0.00 0.00 0.051 0.1640.116 22 0.63 0554 DE 77 0312 0.00 0.000 0.000331 028 1149 . 0.0510000 21 0254 0.20 0.19 0.114 0.135 0.00 0.00 0.00 0.00 22 0.031 2002 0522 0.432 0:342027 0225 0.114.1500123 13 0.056 0.04 0.03 0.000011 05 06 0507 0.36 0.200.211 0.17 0.1386.112 0.00400400040 0.00 0.002 0.015 14 DE 0490 000 0.399 30 197 0.132 0.00043 20 0.0 0.01 03 25 0.70 DE OSTS 02950 Q 0.148 0.116 DO 0 0.0 25 12 0.135 0.106 0.03 21 OM D450 OM 0 000 981 DEN 0435 DOT 0.000 002 0.01 0.011 Future Value of 1 Pods 2 4 3 tos 145 101 102 TOOTTO 1.020 1040 108 109 110 11145 1.18 20 100 3 101112 119112251200 1296 1.331 1405 14 19 4 1041 1021.120 121 122 131 1.360142 TIM 5 1051 11041501217121.338 1499 151 112 2011 1002 11 LH 1245 1.3401415 1.501 1772 19142.1952 TOR 1.149 1230 1316 TAN 1904 1.808 1.714 122125022000 100172 19 1477 1.59 1.8511 2.14124125 30 TON 1.15 1:30 1423 1541 1999 2172 2.3277329 19 1.1051219 1344 1.4301 2159 2.20 11 111612431.3941509 1.710125 2005 2302 2.580253442 12 1.127 2012 236 2521 38954 249 30661452454250 1.149 1513 2251 2579 280 3.2 17 82 TOY 15 15 2.75 2172 354241775424713 15 117313731.805 295 1425 39904586 10:32 IF 1.154 1.400 110010 5.054 9.29 1978 116 1428 3996 17 5.507.6901082 13 1.200 1.220 TAM 144 31 21 1516 414 5048.19400180156 1225 8140 1210214 1.251 135520 1270 15 2321 17.30 450 301 2.800 102 23 0 3 900 SEE SEERE SEUS EN HS PE DYR VID 20 Pin Done Print Done SE SC ME SS w 1500 4 5 6 ET OT OF I MET Future Value of Ordinary Annuity of 11 eriods 15 45 5% 6% 7% 14 1500 1.600 99 1.000 1.000 1000 1000 2 1000 1000 2010 2020 2030 2040 2050 2050 2070 2030 1.000 1000 10001 3 3.03030 2.000 2100 2120 250 2150 3.011 31223153 311 3.215 3246 4 4004122 4134 4245 4310 4.375 4440 4506 3278330 3314 3.4 3.473 5 5101 4573 5.416 5204 5.300 553 5.537 5.751 4541 479 49214993 5.857 595 8.105353 6.152 8.45 6683 6.802 8.875715733 7 7214 744 703 7523 7.900 1428.94 7.116 115 8154 8903 8.5 8.754 8281 30 9.200 9.487 82 9214 9549 10200 104 1103 100 1073 110 9 9.36 755 10.16 10158 11:44 1149 12:30 1320 13.73 11.99 10 1846 10.95 1146 1201 14.11.09 13.50 12.58 1073 179942 11 9157 12.17 128 13.45 1421 14.97 15 12 1253 165 1756 1 13.41 14.13 15.92 16.87 17. 2065 2004 2435 20.1421324132727 21.00 13 13.61 15.6 1600 1721 20.14 14 1495 1597 215 225 2452 17.00 203 12091435 21.07 15 22.55 1610 2421 2102 21032312 17.29 183002 2150 4050 2323 25.13 27.15 2177 37 4758 96 1726 1884 20.16 21.00 21662567 279912 17 18 2001 2175 23.70 254 2521 304 33.75 4054 33.00 42.75872 18 79.61 2141 23.41 25.5 28.13 43.8120 3400 STAS 30.01 2013 5656 2767 28.12 75.4 33.738 15 416251.16 20 1121 2681 41.00 4575 51.165720 72.05.2 20 23 24 2868 3572 2730 1548113 3054 0.0 160 3851 345.01 55.46 287 71.40 22 28.85 414 700 534 609357254 1046 1383593 24 200 4.43 30.00 0675085011821907182 25 24 22.03 4165 47 73 54 6325 73.11 840 135 1333 1819 2123 501 5816 79.96 03:30 20 4.08542 60.71 635 1007 124 104235 1092 503 20832257 15. 12 13 Present Value of Ordinary Annuity of 15 7 8% 125 155 0.900001 2002 2003 2002 1970112131881850 1101 1.199 1.890 15 16 2.941 22.000 2.775 2.723 2.673 2004 2577 1806586 2.531 2487 3.902 3.8083717 36301545 3.465 3.37 3312 4153 4713 3.3403.170303 2.914 2.55 279 280 255 4212 4100 39333191360951 3.38 3.294 2900 5.795.000 5.4175.222 SN 4.917 47662344 4356 4.11 6722 3.8903 3885 1492 31 6230 5.750 5.399 52 500 4968 4.16 45644358 4009 32 7.652 705 344 700005359 574 57 5.65 5.25 4.968 85 JI 454 4.618 74357.100 8.8026.515 6.20 5.5 575 5.309 9.41 850 8.117.722 7071346 6418 6.145 50 5215 5019 441 1 9253870830877 749736.05456 5935.4505294 500g 11.255 10.55995493858.388.347.50 5814 8.194 5197 12111310095 2:3 8853 435877487 5862 644 55 13.10412001120109205N8.14 450 ST 7.737.357 6.724 5.000 13.35 2181118 9728580 BAT 1425 5.575 SOR 40 13.6781258110521080106483516.3070462055954 5.12 47 15.52 1201612100912410477..122 8.544 8.00 7.120 8047 47 16.30 13.754 120100132810059.372 7250 172261.09 10.134 2005 11.15 53 6467 8.305 10.300.350 . 18 BATT UT1100119 514 5378 45 7496.23 5353 437 18.8571701545.60 12.021 14.00 122 8.6476667632 5.83 14 19.15 14.45 1201211061 10.2012 1772 7.645 810 1990 5.01040 20451822 18.44411.430 12:30 11292193119.50 8883 672 2130 131.985 3.0 12.00 1100101001 ES 5451 22.023132317413 15.022 0211654. 7.83 545F 22.7 201317.8715031001111011109829 ANI 76.900 6118 8.691 23:50 200 1832 16.300.321198700087 4 937 1.90 6.36 54 SAN 15 UN ST 13 19 OC 10 21 2016 SER 24 Print Done Print Done