back, ARR, NPV, IRR, and profitability index to make capital Capital Investment Decisions 669 211-294 Using payback, AR investment decisions Water Country is considerine $1,850,000. The new facility eight years. Engineers est Learning Objectives 2, 4 ntry is considering purchasing a water park in Atlanta, Georgia, for 6. The new facility will generate annual net cash inflows of $475,000 for rs. Engineers estimate that the facility will remain useful for eight years ve no residual value. The company uses straight-line depreciation, and its lders demand an annual return of 12% on investments of this nature. 1.26.35% ARR; 1.28 profitability index stockholders demand an ann Requirements 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