cash inflows of $462,000 for eight years. Engineers estimate that the facility will remain useful for eight years and Splash City is considering purchasing a water park in Atlanta, Georgia, for $1,850,000. The new facility will generate annual have no residual value. The company uses straight-line depreciation, and its stockholders demand an annual return of 12 % on investments of this nature. E(Click e icon to view the Present Value of $1 table.) (Cli icon view Present Value of Ordinary Annuity of $1 table.) (Click the icon B(Click the icon to view Future Value view Future Value of $1 table.) 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. o one decimal place, X.X.) First, determine the formula and calculate payback. (Round your answer 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 net present value (NPV). (Enter any factor amounts to three decimal places, X.XXX.) Net Cash Present Annuity PV Factor (i-12 % , n - 8 ) Inflow Value Years Present value of annuity 1-F Investment Net present value the investment The IRR (intemal rate return) is between Finally, determine the formula and calculate the profitability index. (Round your answer to two decimal places, XXX.) =Profitability index Requirement 2, Recommend whether the company should invest in this project Recommendation: Splash 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 Future Value of Ordinary Annuity of $1 Periods 1% 2% 3% 4% 5% 6% 7% 8% 9% 10% 12% 14% 15% 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 2.010 2.020 2.030 2.040 2.050 3.153 2.060 2.070 2.080 2.090 2.100 3.310 2.120 2.140 2.150 3.091 3.030 3.060 3.122 3.184 3.215 3.246 3.278 3.374 3.440 3.473 4,060 4,122 4,184 4,246 4.310 4,375 4,440 4,506 4,573 4,641 4.779 4.921 4,993 5 5.101 5.204 5.309 5.416 5.526 5.637 5.751 5.867 5.985 6.105 6.353 6.610 6.742 6 6.152 6.308 6.468 6.633 6.802 6.975 7.153 7,336 7.523 7.716 8.115 10.09 8.536 8.754 7.662 9.200 7 7,214 7,434 7.898 8.142 8.394 8.654 8,923 9.487 10.73 11.07 8 8.286 8.583 8.892 9.214 9.549 9.897 10.260 10.64 11.03 11.44 12.30 13.23 13.73 9 9.369 9.755 10.16 10.58 11.03 11.49 11.98 12.49 13.02 13.58 14.78 16.09 16.79 10 10.46 10.95 11.46 12.01 12.58 13.18 13.82 14.49 15.19 15.94 17.55 19.34 20.30 11 11.57 12.17 12.81 13.49 15.03 14.21 14.97 15.78 16.65 17.56 18.53 20.65 23.04 24.35 12 12.68 13.41 14.19 15.92 16.87 17.89 18.98 20.14 21.38 24.13 27.27 29.00 13 13.81 14.68 15.62 16.63 17.71 18.88 20.14 21.50 22.95 24.52 28.03 32.09 34.35 14 14.95 15.97 17.09 18.29 19.60 21.02 22.55 24.21 26.02 27.98 32.39 37.58 40.50 15 16.10 17.29 18.60 20.02 21,58 23.28 25.13 27.15 29.36 31.77 37.28 43.84 47.58 16 17.26 18.64 20.16 21.82 23.66 25.67 27.89 30.32 33.00 35.95 42.75 50.98 55.72 17 18.43 20.01 21.76 23.70 25.84 28.21 30.84 33.75 36.97 40.54 48.88 59.12 65.08 18 19.61 21.41 23.41 25.65 28.13 30.91 34.00 37.45 41.30 45.60 68.39 75.84 55.75 19 20.81 22,84 25.12 27.67 30.54 33.76 37.38 41.45 46.02 51.16 63.44 78.97 88.21 20 22.02 24.30 26.87 29.78 33.07 36.79 41.00 45,76 51.16 57.28 72.05 91.02 102.4 56.76 81.70 21 23.24 25.78 28.68 31.97 35,72 39.99 44,87 50.42 64.00 104.8 118.8 22 24.47 27.30 30.54 34.25 38.51 43.39 49.01 55.46 62.87 71.40 92.50 120.4 137.6 23 25.72 28.85 32.45 36.62 41.43 47.00 53.44 60.89 69.53 79,54 104.6 138.3 159,3 24 26.97 30.42 34.43 39.08 44.50 50.82 58.18 66.76 76.79 88.50 118.2 158.7 184.2 25 28.24 32.03 36.46 41.65 47.73 54.86 63.25 73.11 84.70 98.35 133.3 181.9 212.8 26 29.53 33.67 38.55 44.31 51.11 59.16 68.68 79.95 93.32 109.2 150.3 208.3 245.7 27 30.82 35.34 40.71 47.08 54.67 63.71 74.48 87.35 102.7 121.1 169.4 238.5 283.6 28 32.13 37.05 42.93 49.97 58.40 68.53 80.70 95.34 113.0 134.2 190.7 272.9 327.1 29 33.45 38.79 45.22 52.97 62.32 73.64 87.35 104.0 124.1 148.6 214,6 312.1 377.2 30 34.78 40.57 47.58 56.08 66.44 79.06 94.46 113.3 136.3 164.5 241.3 356.8 434.7 40 48.89 60.40 75.40 95.03 120.8 154.8 199.6 259.1 337.9 442.6 767.1 1,342 1,779 50 64.46 84,58 112.8 152.7 209.3 290.3 406,5 573.8 815.1 1,164 2.400 4,995 7,218 23 5 Future Value of $1 Periods 1% 2% 3% 4% 5% 6% 7% 8% 9% 10% 12% 14% 15% 1.010 1.020 1.030 1.040 1.050 1.060 1.070 1.080 1.090 1.100 1.120 1.140 1.150 2 1.020 1.040 1.061 1.082 1.103 1.124 1.145 1.166 1.188 1.210 1.254 1.300 1.323 3 1.030 1.061 1.093 1.125 1.158 1.191 1.225 1.260 1.295 1,331 1.405 1.482 1.521 1.412 1.539 4 1.041 1.082 1.126 1.170 1.216 1.262 1.311 1.360 1.464 1.574 1.689 1,749 5 1.051 1.104 1.159 1.217 1.276 1.338 1.403 1.469 1.611 1.762 1.925 2.011 6 1.062 1.126 1.194 1.265 1,340 1.419 1.501 1.587 1.677 1.772 1.974 2.195 2.313 7 1.072 1.149 1.172 1.195 1.230 1.316 1,407 1.504 1.606 1.714 1.828 1.949 2.211 2.502 2.660 8 1.083 1.267 1.369 1,477 1.594 1.689 1.718 1.851 1.993 2.144 2.476 2.853 3.059 9 1.094 1,305 1.423 1.551 1.838 1.999 2.172 2.358 2.773 3.252 3.518 10 1.105 1.219 1.344 1.480 1.629 1.791 1.967 2.159 2.367 2.594 3.106 3.707 4.046 11 1.116 1.243 1.384 1.539 1.710 1.898 2.105 2.332 2.580 2,853 3.479 4,226 4,652 2.012 2.133 12 1.127 1.268 1,426 1.601 1,796 2.252 2.518 2.813 3.138 3.896 4,818 5.350 13 1.138 1.294 1.469 1.665 1.886 2.410 2.720 3.066 3.452 4.363 5.492 6.153 14 1.149 1.319 1.513 1,732 1.980 2.261 2.579 2.937 3.342 3.798 4,887 6.261 7,076 15 1.161 1.346 1.558 1.801 2.079 2.397 2.759 3.172 3.642 4.177 5.474 7.138 8.137 16 1.173 1.373 1.605 1.873 2.183 2.540 2.952 3.426 3.970 4.595 6.130 8.137 9.358 3.700 4,328 17 1.184 1.400 1.653 1.948 2.292 2.693 3.159 5.054 6.866 9.276 10.76 18 1.196 1.428 1,702 2.026 2.407 2.854 3.380 3.996 4,717 5.560 7.690 10.58 12.38 19 1.208 1.457 1.754 2.107 2.527 3.026 3.617 4.316 5.142 6.116 8.613 12.06 14.23 20 1.220 1.486 1.806 2.191 2.653 3.207 3.870 4.661 5.604 6.727 9.646 13.74 16.37 21 1.232 1.516 1.860 2.279 2.786 2.925 3.400 4.141 5.034 6.109 7,400 10.80 15.67 18.82 22 1.245 1.546 1.916 2.370 3.604 4.430 5.437 6.659 8.140 12.10 17.86 21.64 23 1.257 1.577 1.974 2.465 3.072 3.820 4.741 5.871 7.258 8.954 13.55 20.36 24.89 24 1.270 1.608 2.033 2.563 3.225 4.049 5,072 6.341 7,911 9.850 15.18 23.21 28.63 25 1.282 1.641 2.094 2.666 3.386 4.292 5.427 6.848 8.623 10.83 17.00 26.46 32.92 6 1.673 2.157 2.772 3.556 5.807 11.92 19.04 21.32 3 37.86 27 1.308 1,707 2.221 2.883 3.733 4.822 6.214 7.988 10.25 13.11 34.39 43.54 28 1.321 1.741 2.288 2.999 3.920 5.112 6.649 8.627 11.17 14.42 23.88 39.20 50,07 29 1.335 1.776 2.357 3.119 4.116 5.418 7.114 9.317 12.17 15.86 26.75 44.69 57.58 30 1.348 1.811 2.427 3.243 4.322 5.743 7,612 10.06 13.27 17.45 29.96 50.95 66.21 1.489 31.41 40 2.208 3.262 4,801 7,040 10.29 14.97 21.72 45.26 93.05 188.9 267.9 50 1.645 2.692 4.384 7.107 11.47 18.42 29.46 46.90 74.36 117.4 289.0 700.2 1,084 Present Value of Ordinary Annuity of $1 12 % 0.893 15% 0.870 Periods 1% 2% 3% 4% 5% 6% 7% 8% 9% 10% 14% 16% 18% 20% 0.990 0.980 0.971 0.962 0.952 0.943 0.935 0.925 0.917 1.759 2.531 3240 0.877 0.862 1.605 0.847 0.833 0.909 1,736 2 1.970 1.942 1.913 1.886 1.859 1.833 1.808 1.783 1,690 1,647 1,626 1.566 1.528 3 2.941 2.884 2829 2.775 2.723 2.673 2,624 2,577 2.487 2.402 2,322 2.283 2.246 2.174 2.106 3.902 3.808 3.465 2.855 4 3.717 3630 3,546 3.387 3.312 3.170 3.037 2.914 2.798 2.690 2.589 4.853 4.713 4,580 4,329 4.212 3.993 3.890 2.991 5 4.452 4.100 3.791 3.605 3.433 3.352 3.274 3.127 4,486 6 5.795 5.601 5.417 5.242 5.076 4,917 4,767 4,623 4,355 4.111 3.889 3.784 3.685 3.498 3,326 7 6.728 6.472 6.230 6,002 5.786 5.582 5,389 5.206 5.033 4,868 4.564 4.288 4.160 4,039 3.812 3.605 7,652 6.463 6.210 5,747 4.968 4,639 4,344 8 7,325 7,020 6.733 5.971 5535 5.335 4,487 4,078 3.837 4.031 4.192 9 8.566 8.162 7,786 7.435 7.108 6.802 6.515 6.247 5.995 5.759 5,328 4.946 4.772 4,607 4,303 10 8.983 8.530 7,722 7,360 7,024 6.710 6.418 6.145 5,019 4.833 4.494 9.471 8.111 5.650 5.216 11 10.368 9.787 9.253 8.760 8.306 7.887 7,499 7,139 6.805 6.495 5.938 5.453 5.234 5,029 4,656 4,327 11.255 10.575 7,536 7.904 12 9.954 9.385 8.863 8.384 7.943 7.161 6.814 6.194 5,660 5.421 5.197 4.793 4,439 12.134 11.348 10.635 13 9.394 7,487 7.103 6.424 4.910 4,533 9.986 8,853 8,358 5.842 5.583 5,342 13.004 12.106 11.296 10.563 13.865 12.849 11.938 11.118 10.380 14 9.899 9.295 8.745 8.244 7.786 7.367 6.628 6.002 5,724 5.468 5.008 4.611 8.559 8.061 7.606 5.092 4,675 15 9.712 9.108 6.811 6.142 5.847 5.575 13.578 12561 11.652 10.838| 10.106 9.447 8.851 9.122 16 14.718 8.313 7.824 6.974 6.265 5.954 5.669 5.162 4.730 15.562 14.292 13.166 18 12.166 11.274 12.659 11.690 10.828 10.059 13.134 12.085 13.590 12.462 17 10.477 9.763 8.544 8.022 7,120 6.373 6.047 5749 5.222 4.775 16.398 14.992 13.754 19 18.046 16.351 14.877 9.372 8.756 8.201 7,250 6.467 6.128 5.818 5273 4.812 15.678 14.324 9.604 8.950 9.129 7,366 6,550 6.198 4.844 17.226 11.158 10.336 8.365 5.877 5.316 11.470 10.594 20 9.818 8.514 7.469 6,623 6.259 5,929 5.353 4.870 14.029 12.821 11.764 10.836 10.017 21 18.857 17.011 15.415 9.292 8.649 7.562 6.687 6.312 5.973 5.384 4.891 19.660 17.658 15.937 14.451 13.163 12.042 11.061 10.201 20.456 18.292 16.444 21.243 18.914 16.936 15.247 13.799 9.442 8772 7,645 6.743 6.359 5.410 4,909 22 6.011 14857 13.489 12.303 11.272 10.371 12.550 11.469 12.783 11.654 10.675 23 9.580 8.883 7.718 6.792 6.399 6.044 5.432 4,925 5.451 24 10.529 9.707 8.985 7.784 6.835 6.434 6,073 4.937 19.523 17.413 15.622 14.094 9.823 6.873 6.464 4,948 25 22.023 9.077 7.843 6.097 5.467 22.795 20.121 17.877 15.983 | 14.375 13.003 | 11.826 10.810 23.560 20.707 24.316 21.281 18.764 16.663 14.898 25.066 21.844 19.188 16.984 15.141 25.808 22.396 19.600 17.292| 15.372 26 9.929 9.161 7.896 6.906 6.491 6.118 5.480 4.956 11.987 10.935 16.330 14.643 27 18.327 13.211 10.027 9.237 7.943 6.935 6.514 6.135 5.492 4.964 10.116 9.307 13.406 12.137 7.984 6.534 4,970 28 11.051 6.961 6.152 5.502 29 13.591 12.278 11.158 10.198 9.370 8.022 6.983 6.551 6.166 5.510 4.975 13.765 12.409 11.258 10.274 6.566 30 9.427 8.055 7.003 6.177 5.517 4 32.835 27.355 23.115 19.793 17.159 15.046 13.332 11.925 40 10.757 9.779 8.244 7.105 6.642 6.233 5,548 39.196 31.424 25.730 21.482 18.256 15.762 13.801 12.233 10.962 9.915 8.304 7.133 6.661 6.246 5.554 4.99 50 Present Value of $1 2 % 0.980 0.990 10% 0.909 Periods 1% 3% 4% 5% 6% 7% 8% 9% 12% 14% 15% 16 % 18% 20% 0.971 0.962 0.952 0.943 0.935 0.926 0.857 0.917 0.893 0.877 0.870 0.862 0.847 0.718 0.833 0.694 0.961 0.943 0.925 0.890 0,873 0.842 0.769 0.756 0743 2 0.980 0.907 0.826 0.797 0,971 0.942 0.915 0.889 0.864 0.840 0.816 0.794 0.772 0.751 0.712 0.675 0.658 0.641 0.609 0.579 0.924 0.888 0.763 0.708 4 0.961 0.855 0.823 0.792 0.735 0.683 0.636 0.592 0,572 0.552 0.516 0.482 5 0.906 0.650 0.497 0.951 0.863 0.822 0.784 0.747 0.713 0.681 0.621 0,567 0.519 0.476 0.437 0.402 6 0,942 0.888 0.837 0.790 0.746 0.705 0.666 0.630 0.596 0.564 0.507 0.456 0,432 0.410 0.370 0.335 7 0.933 0.871 0.813 0.760 0.711 0.665 0.623 0.583 0.547 0.513 0.452 0.400 0.376 0.354 0.314 0.279 0.731 8 0.923 0.540 0.502 0.233 0.853 0.789 0.677 0.627 0,582 0.467 0.404 0.351 0,327 0.305 0,266 9 0.914 0.837 0.766 0.703 0.645 0,592 0.544 0.500 0.460 0.424 0.361 0.308 0.284 0.263 0,225 0.194 10 0,905 0.820 0.614 0.558 0.463 0.162 0.744 0.676 0.508 0.422 0.386 0.322 0.270 0.247 0.227 0.191 0.162 11 0.896 0.804 0.722 0.650 0,585 0.527 0.475 0.429 0.388 0.350 0.287 0.237 0.215 0.195 0.135 12 0.887 0.788 0.701 0.625 0.557 0.497 0.444 0.397 0.356 0.319 0.257 0.208 0.187 0.168 0.137 0.112 13 0773 0.601 0.368 0.879 0.681 0.530 0.469 0.415 0.326 0.290 0.229 0.182 0.163 0.145 0.116 0.093 14 0.870 0.758 0.661 0.577 0.505 0.442 0.388 0.340 0.299 0.263 0.205 0.160 0.141 0.125 0.099 0.078 0,861 0.555 0.140 15 0.743 0.642 0.481 0.417 0.362 0.315 0.275 0.239 0.183 0.123 0.108 0.084 0.065 16 0.853 0.728 0.623 0.534 0.458 0.394 0.339 0.292 0.252 0.218 0.163 0.123 0.107 0.093 0.071 0.054 0.844 0.270 0,060 17 0.714 0.605 0.513 0.436 0.371 0,317 0.231 0.198 0.146 0.108 0.093 0,080 0.045 18 0.836 0.700 0.587 0.494 0.416 0.350 0.296 0.250 0212 0.180 0.130 0,095 0.081 0.069 0.051 0.038 0.828 0.686 0.396 0.232 0.194 0.164 19 0.570 0.475 0.331 0.277 0.116 0.083 0,070 0,060 0,043 0.031 20 0.820 0.673 0.554 0.456 0.377 0.312 0.258 0.215 0.178 0.149 0.104 0.073 0.061 0.051 0.037 0.026 21 0.811 0.660 0.538 0.439 0.359 0.294 0.242 0.199 0.164 0.135 0.093 0.064 0.053 0.044 0.031 0.022 22 0.803 0.422 0.342 0.184 0.150 0.083 0.018 0.647 0.522 0.278 0.226 0.123 0,056 0.046 0.038 0.026 23 0.795 0.634 0.507 0.406 0.326 0.262 0.211 0.170 0.138 0.112 0.074 0.049 0.040 0.033 0.022 0.015 0.310 0.126 0.116 0.028 24 0.788 0.622 0.492 0.390 0.247 0.197 0.158 0.102 0.066 0.043 0.035 0,019 0.013 0,780 0.146 25 0.610 0.478 0.375 0.295 0.233 0.184 0.092 0.059 0.038 0.030 0.024 0.016 0,010 0.281 26 0.772 0.598 0.464 0.361 0.220 0.172 0.135 0.106 0,084 0.053 0.033 0.026 0,021 0.014 0.009 27 0.764 0.586 0.450 0.347 0.268 0.207 0.161 0.125 0.098 0.076 0.047 0.029 0.023 0.018 0.011 0.007 28 29 30 0.116 0.757 0.574 0.437 0.333 0.255 0.196 0.150 0,090 0,069 0.042 0.026 0.020 0.016 0.010 0.006 0.749 0.563 0.424 0.321 0.243 0.185 0.141 0.107 0,082 0,063 0.037 0.022 0.017 0.014 0,008 0,005 0.552 0.308 0,742 0.412 0.231 0.174 0.131 0.099 0.075 0.057 0.033 0.020 0.015 0.012 0,007 0.004 0.001 40 0.672 0.453 0.307 0.208 0.142 0.097 0.067 0.046 0.032 0.022 0.011 0.005 0.004 0.003 0.001 0,009 0,608 0.372 0.228 0.141 0,087 0.054 0,021 0,013 50 0.034 0.003 0.001 0.001 0,001