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Question BP26-30A (book/static) Splash Nation is considering purchasing a water park in Atlanta, Georgia, for $1,910,000. The new facility wil generate annual net cash inflows

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Question BP26-30A (book/static) Splash Nation is considering purchasing a water park in Atlanta, Georgia, for $1,910,000. The new facility wil generate annual net cash inflows of $483,000 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 10% on investments of this nature. (Click the icon to view the Present Value of $1 table.) (Click the icon to view Prosent Value of Ordinary Annuity of $1 table.) (Click the loon to view Future Val * Requirements Read the requirements Calculate the net present value (NPV 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. Years 1-8 Present value of annuity Print Done 0 Investment Not present value of the investment Enter any number in the edit fields and then click Check Answer. 3 parts remaining Clear All Check Answer P26-30A (book/static) Question Help Splash Nation is considering purchasing a water park in Atlanta, Georgia, for $1,910,000. The new facility will generate annual net cash inflows of $483,000 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 10% 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 Calculate the net present value (NPV). (Enter any factor amounts to three decimal places, X.XXX.) Net Cash Annuity PV Factor Present Years Inflow (10%) Value 1.8 Present value of annuity $ 483.000 .8 483000 Investment (1,910,000) Net present value of the investment 244250 0 Enter any number in the edit fields and then click Check Answer 3 parts remaining Clear All Check

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