Future Value of Ordinary Annuity of $1 1% 2% 3% 4% 5% 6% 7% 8% 9% 10% 12% 14% Periods 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 2.070 2.080 2.090 2.100 2.120 2.140 2.150 2 2.060 3 3.091 3.030 3.060 3.122 3.153 3.184 3.215 3.246 3.278 3.310 3.374 3.440 3.473 4.060 4.184 4.246 4.506 4.573 4.779 4 4.122 4.310 4.375 4.440 4.641 4.921 4.993 6.742 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 6.152 6.308 6.468 6.633 6.802 6.975 7.153 7.336 7.523 7.716 8.115 8.536 8.754 7.214 7.434 7.662 7.898 8.142 8.394 8.654 8.923 9.200 9.487 10.09 10.73 11.07 7 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 9.369 10.16 10.58 11.03 11.49 11.98 12.49 13.02 13.58 14.78 16.09 16.79 9.755 10 13.18 20.30 10.46 10.95 11.46 12.01 12.58 13.82 14.49 15.19 15.94 17.55 19.34 11 11.57 12.17 12.81 13.49 14.21 14.97 15.78 16.65 17.56 18.53 20.65 23.04 24.35 17.89 12 12.68 13.41 14.19 15.03 15.92 16.87 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 24.21 26.02 27.98 32.39 37.58 40.50 21.02 22.55 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 21.82 27.89 30.32 33.00 42.75 50.98 55.72 20.16 23.66 25.67 35.95 40.54 36.97 48.88 23.70 17 18.43 20.01 21.76 25.84 28.21 30.84 33.75 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 55.75 68.39 75.84 19 22.84 25.12 27.67 30.54 37.38 51.16 63.44 88.21 20.81 33.76 41.45 46.02 78.97 Present Value of $1 5% 12% 14% 15% 18% 20% Periods 1% 2% 3% 4% 6% 7% 8% 9% 10% 16% 1 0.990 0.980 0.971 0.962 0.952 0.943 0.935 0.926 0.917 0.909 0.893 0.877 0.870 0.862 0.847 0.833 2 0.980 0.961 0.925 0.907 0.890 0.873 0.857 0.842 0.826 0.797 0.769 0.756 0.743 0.718 0.694 0.943 3 0.864 0.971 0.942 0.915 0.889 0.840 0.816 O.794 0.772 0.751 0.712 0.675 0.658 0.641 0.609 0.579 4 0.823 0.961 0.924 0.888 0.855 0.792 0.763 0.735 0.708 0.683 0.636 0.592 0.572 0.552 0.516 0.482 5 0.951 0.906 0.863 0.822 0.784 0.747 0.713 0.681 0.650 0.621 0.567 0.519 0.497 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 0.760 0.513 0.452 0.279 0.871 0.813 0.711 0.665 0.623 0.583 0.547 0.400 0.376 0.354 0.314 0.923 8 0.853 0.789 0.731 0.677 0.627 0.582 0.540 0.502 0.467 0.404 0.351 0.327 0.305 0.266 0.233 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 0.744 0.676 0.614 0.558 0.508 0.463 0.386 0.322 0.270 0.227 0.191 0.162 0.422 0.247 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 0.162 0.135 0.319 12 0.887 0.788 0.701 0.625 0.557 0.497 0.444 0.397 0.356 0.257 0.208 0.187 0.168 0.137 0.112 13 0.879 0.773 0.681 0.601 0.530 0.469 0.415 0.368 0.326 0.290 0.229 0.182 0.163 0.145 0.116 0.093 0.870 14 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 15 0.183 0.861 0.743 0.642 0.555 0.481 0.417 0.362 0.315 0.275 0.239 0.140 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 17 0.198 0.844 0.714 0.605 0.513 0.436 0.371 0.317 0.270 0.231 0.146 0.108 0.093 0.080 0.060 0.045 18 0.836 0.700 0.494 0.416 0.350 0.296 0.250 0.212 0.180 0.130 0.095 0.081 0.069 0.051 0.038 0.587 0.828 0.570 0.232 0.043 0.031 19 0.686 0.475 0.396 0.331 0.277 0.194 0.164 0.116 0.083 0.070 0.060 Future Value of $1 3% 4% 6% 7% 12% Periods 1% 2% 5% 8% 9% 10% 14% 15% 1.080 1.120 1.010 1.020 1.030 1.040 1.050 1.060 1.070 1.090 1.100 1.140 1.150 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 2 1.030 1.061 1.093 1.191 1.260 1.331 1.405 1.482 3 1.125 1.158 1.225 1.295 1.521 4 1.041 1.082 1.126 1.170 1.216 1.262 1.311 1.360 1.412 1.464 1.574 1.689 1.749 1.051 1.104 1.159 1.217 1.276 1.338 1.403 1.469 1.539 1.611 1.762 2.011 5 1.925 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 1.230 1.316 1.407 1.504 1.606 1.714 1.828 1.949 2.211 2.502 2.660 1.369 1.718 1.851 1.993 8 1.083 1.172 1.267 1.477 1.594 2.144 2.476 2.853 3.059 9 1.094 1.195 1.305 1.423 1.551 1.689 1.838 1.999 2.172 2.358 2.773 3.252 3.518 1.219 1.344 1.480 1.629 1.967 2.159 2.367 2.594 4.046 10 1.105 1.791 3.106 3.707 1.116 1.898 2.853 4.226 11 1.243 1.384 1.539 1.710 2.105 2.332 2.580 3.479 4.652 12 1.127 1,268 1.426 1.601 1.796 2.012 2.252 2.518 2.813 3.138 3.896 4.818 5.350 1.886 3.066 5.492 6.153 13 1.138 1.294 1.469 1.665 2.133 2.410 2.720 3.452 4.363 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 1.558 1.161 1.346 2.079 3.172 3.642 8.137 15 1.801 2.397 2.759 4.177 5.474 7.138 16 1.873 2.952 3.426 8.137 9.358 1.173 1.373 1.605 2.183 2.540 3.970 4.595 6.130 17 1.184 1.400 1.653 1.948 2.292 2.693 3.159 3.700 4.328 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 Present Value of Ordinary Annuity of $1 10% 15% 20% Periods 1% 2% 3% 4% 5% 6% 7% 8% 9% 12% 14% 16% 18% 0.980 0.962 0.926 0.909 1.736 0.877 0.870 1.626 0.847 0.833 1.528 1 0.990 0.971 0.952 0.943 0.935 0.917 0.893 0.862 2 1.970 1.942 1.913 1.886 1.859 1.833 1.808 1.783 1.759 1.690 1.647 1.605 1.566 2.941 2.829 2.531 2.673 2.402 3 2.884 2.775 2.723 2.624 2.577 2.487 2.322 2.283 2.246 2.174 2.106 4 3.902 3.808 3.717 3.630 3.546 3.465 3.387 3.312 3.240 3.170 3.037 2.914 2.855 2.798 2.690 2.589 4.853 4.713 4.580 4.452 4.329 4.212 4.100 3.993 3.890 3.791 3.605 3.433 3.352 3.274 3.127 2.991 5 6 5.795 5.601 5.417 5.242 5.076 4.917 4.767 4.623 4.486 4.355 4.111 3.889 3.784 3.685 3.498 3.326 6.728 6.472 6.230 6.002 5.786 5.582 6.210 5.389 4.564 4.039 7 5.206 5.033 4.868 4.288 4.160 3.812 3.605 5.535 8 7.652 7.325 7.020 6.733 6.463 5.971 5.747 5.335 4.968 4.639 4.487 4.344 4.078 3.837 4.031 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 9.471 8.983 8.530 7.722 7.360 7.024 6.710 6.418 5.650 5.216 5.019 4.833 4.494 4.192 8.111 6.145 9.787 11.255 10.575 11 10.368 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 12 8.863 8.384 6.194 5.421 4.793 9.954 9.385 7.943 7.536 7.161 6.814 5.660 5.197 4.439 11.348 10.635 13.004 12.106 11.296 13.865 12.849 11.938 8.853 5.583 4.533 13 12.134 9.986 9.394 8.358 7.904 7.487 7.103 6.424 5.842 5.342 4.910 14 10.563 9.899 9.295 8.745 8.244 7.786 7.367 6.628 6.002 5.724 5.468 5.008 4.611 11.118 10.380 15 9.712 9.108 8.559 8.061 7.606 6.811 6.142 5.847 5.575 5.092 4.675 14.718 13.578 12.561 15.562 14.292 13.166 18 17.226 15.678 14.32413.134 11.652 10.83810.106 12.166 11.274 10.477 16 9.447 8.851 8.313 7.824 6.974 6.265 5.954 5.669 5.162 4.730 17 9.122 8.544 8.022 7.120 6.373 5.222 4.775 9.763 6.047 5.749 6.128 16.398 14.992 13.754 12.659 11.690 10.828 10.059 9.372 8.756 8.201 7.250 6.467 5.818 5.273 4.812 12.085 11.158 10.336 19 9.604 8.950 8.365 7.366 6.550 6.198 4.844 5.877 5.316 Water Planet is considering purchasing a water park in Atlanta, Georgia, for $1,820,000. The new facility will generate annual net cash inflows of $462,000 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.) EClick the icon to view Future Value of Ordinary Annuity of $1 table.) (Click the icon to view Future Value 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.) 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 Annuity PV Factor Present Years (i-12%, n-8) Value Inflow Present value of annuity 1 8 Investment C 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.) Profitability index Requirement 2. Recommend whether the company should invest in this project. invest in the project because the payback period is Recommendation: Water Planet Vthe operating life, the NPV is the Vone, and the ARR and lRR are Vthe company's required rate of return. profitability index is