Rapid wave is considering purchasing a water park in charleston south carolina for 1950000. the new facility will generate annual net cash inflows of $505,000 for 8years. Engineers estimate that the facility will remain useful for eight years and have no residual value. the company uses straight line depreciation. its owners want payback in less than 5 years and an APR of 12% or more. Management uses a 14% hurdle rate on investments of this nature.

1 Requirements 1. Compute the payback period, the ARR, the NPV, and the approximate IRR of this investment (If you use the tables to compute the IRR, answer with the closest interest rate shown in the tables.) 2. Recommend whether the company should invest in this project. Print Done Requirement 1. Compute the payback period, the ARR, the NPV, and the approximate IRR of this investment. (if you use The payback period isyears. Round the percentage to the nearest tenth percent.) The ARR (accounting rate of return) is 1% Round your answer to the nearest whole dollar.) Net present value $ The IRR (internal rate of return) s between Requirement 2. Recommend whether the company should invest in this project he IRR (internal rate of return) is between equirement 2. Recommend whether the o ecommendation: this project 16% and 18% 22% and 24% 20% and 22% 18% and 20%