Calculate the net present value (NPV). (Enter any factor amounts to three decimal places, X.XXX.) Net Cash Present Annuity PV Factor (i=12%, n=8) Years Inflow Value 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 the profitability index. (Round your answer to two decimal places, X.XX.) Present value of net cash inflows Initial investment = Profitability index Requirement 2. Recommend whether the company should invest in this project. Water City is considering purchasing a water park in Atlanta, Georgia, for $1,900,000. The new facility will generate annual net cash inflows of $480,000 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.) 5 (Click the icon to view Present Value of Ordinary Annuity of $1 table.) (Click the icon to view Future Value of $1 table.) 3 (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 investment. First, determine the formula and calculate payback. (Round your answer to one decimal place, X.X.) Amount invested Expected annual net cash inflow ILI Payback 1900000 480000 4.0 years Next, determine the formula and calculate the accounting rate of return (ARR). (Round the percentage to the nearest tenth percent, X.X%.) Average annual operating income Average amount invested ARR Net Cash Present Annuity PV Factor (i=12%, n=8) Years Inflow Value 1 -8 Present value of annuity 0 Investment Net present value of the investment The IRR (internal rate of return) is between V. Finally, determine the formula and calculate the profitability index. (Round your answer to two decimal places, X.XX.) Present value of net cash inflows Initial investment = Profitability index Requirement 2. Recommend whether the company should invest in this project. Recommendation: Water City company's required rate of return. invest in the project because the payback period is the operating life, the NPV is , the profitability index is one, and the ARR and IRR are the