Reference X Present Value of Annuity of $1 3.902 Periods 1% 2% 3% 4% Period 1 0.990 0.980 0.971 Period 2 1.970 1.942 1.913 Period 3 2.941 2.884 2.829 2.775 Period 41 Period 5 0.962 5% 6% 8% 10% 12% 0.952 0.943 0.926 0.909 0.893 0.877 14% 16% 18% 20% 0.862 0.847 0.833 1.886 1.859 1.833 1.783 1.736 1.690 1.647 1.605 1.566 1.528 2.723 2.673 2.577 2.487 2.402 2.322 2.246 2.174 2.106 3.808 3.717 3.630 3.546 3.465 3.312 3.170 3.037 2.914 4.853 4.713 4.580 4.452 4.329 4.212 3.993 3.791 3.605 3.433 2.798 2.690 2.589 3.274 3.127 2.991 7.722 8.306 8.863 Period 6 5.795 5.601 5.417 5.242 5.076 4.917 4.623 4.355 4.111 3.889 Period 7 6.728 6.472 6.230 6.002 5.786 5.582 5.206 4.868 4.564 4.288 Period 8 7.652 7.325 7.020 6.733 6.463 6.210 5.747 5.335 4.968 4.639 4.344 Period 9 8.566 8.162 7.786 7.435 7.108 6.802 6.247 5.759 5.328 4.946 Period 10 9.471 8.983 8.530 8.111 Period 11 10.368 9.787 9.253 8.760 Period 12 11.255 10.575 9.954 9.385 Period 13 12.134 11.348 10.635 9.986 9.394 8.853 7.904 7.103 6.424 Period 14 13.004 12.106 11.296 10.563 9.899 9.295 8.244 7.367 6.628 Period 15 13.865 12.849 11.938 11.118 10.380 9.712 8.559 7.606 6.811 Period 20 18.046 16.351 14.877 13.590 12.462 11.470 9.818 8.514 7.469 Period 25 22.023 19.523 17.413 15.622 14.094 12.783 10.675 9.077 7.843 Period 30 25.808 22.396 19.600 17.292 15.372 13.765 11.258 9.427 8.055 7.003 Period 40 32.835 27.355 23.115 19.793 17.159 15.046 11.925 9.779 8.244 7.105 6.233 5.548 4.997 3.685 3.498 3.326 4.039 3.812 3.605 4.078 3.837 4.607 4.303 4.031 7.360 6.710 6.145 5.650 5.216 4.833 4.494 4.192 7.887 7.139 6.495 5.938 5.453 5.029 4.656 4.327 8.384 7.536 6.814 6.194 5.660 5.197 4.793 4.439 5.842 5.342 4.910 4.533 6.002 5.468 5.008) 4.611 6.142 5.575 5.092 4.675 6.623 5.929 5.353 4.870 6.873 6.097 5.467 4.948 6.177 5.517 4.979 Reference Periods 1% 2% 3% 4% Period 1 0.990 0.980 0.971 0.962 Period 2 0.980 0.961 0.943 0.925 Period 3 Period 4 0.961 0.924 0.971 0.942 0.915 0.889 0.864 Present Value of $1 5% 6% 8% 10% 12% 14% 16% 18% 20% 0.952 0.943 0.926 0.909 0.893 0.877 0.862 0.847 0.833 0.907 0.890 0.857 0.826 0.797 0.769 0.743 0.718 0.694 0.840 0.794 0.751 0.712 0.675 0.641 0.609 0.579 0.888 0.855 0.823 Period 5 0.951 0.906 0.863 Period 6 0.942 0.888 0.837 Period 7 0.933 0.871 0.813 0.760 0.711 0.665 Period 8 0.923 0.853 0.789 0.731 0.677 0.627 Period 9 0.914 0.837 0.766 0.703 0.645 0.592 0.500 0.424 0.361 0.476 0.790 0.746 0.705 0.630 0.564 0.507. 0.456 0.410 0.370 0.335 0.583 0.513 0.452 0.400 0.354 0.314 0.279 0.540 0.467 0.404 0.351 0.305 0.266 0.233 0.308 0.263 0.225 0.194 0.792 0.735 0.683 0.636 0.592 0.552 0.516 0.482 0.822 0.784 0.747 0.681 0.621 0.567 0.519 0.437 0.402 Period 10 0.905 0.820 0.744 0.676 0.614 0.558 0.463 0.386 0.322 0.270 0.227 0.191 0.162 Period 11 0.896 0.804 0.722 0.650 0.585 0.527 0.429 0.350 0.287 0,237 0.195 0.162 0.135 Period 12 0.887 0.788 0.701 0.625 0.557 0.497 0.397 0.319 0.257 0.208 0.168 0.137 0.112 Period 13 0.879 0.773 0.681 0.601 0.530 0.469 0.368 0.290 0.229 0.182 0.145 0.116 0.093 Period 14 0.870 0.758 0.661 0.577 0.505 0.442 0.340 0.263 0.205 0.160 0.125 0.099 0.078 Period 15 0.861 0.743 0.642 0.555 0.481 0.417 0.315 0.239 0.183 0.140 0.108 0.084 0.065 Period 20 0.820 0.673 0.554 0.456 0.377 0.312 0.215 Period 25 0.780 0.610 0.478 0.375 Period 30 0.742 0.552 Period 40 0.672 0.453 0.295 0.233 0.146 0.412 0.308 0.231 0.174 0.099 0.307 0.208 0.142 0.097 0.046 0.149 0.104 0.073 0.051 0.092 0.059 0.038 0.024 0.016 0.057 0.033 0.020 0.012 0.007 0.022 0.011 0.005 0.003 0.001 0.037 0.026. 0.010 0.004 0.001 Reference Future Value of Annuity of $1 I Periods 1% 2% 3% 4% 5% 6% Period 1 1.000 Period 2 2.010 Period 3 3.030 Period 4 4.060 1.000 1.000 2.020 2.030 2.040 3.060 3.091 3.122 4.122 4.184 4.246 1.000 8% 1.000 1.000 1.000 1.000 2.050 2.060 2.080 3.153 3.184 3.246 4.310. 4.375 4.506 10% 12% 14% 16% 18% 20% 1.000 1.000 1.000 1.000 1.000 2.100 2.120 2.140 2.160 2.180 2,200 3.310 3.374 3.440 3.506 3.572 3.640 4.641 4.779 4.921 5.066 5.215 5.368 Period 5 5.101 5.204 5.309 5.416 5,526 5.637 5.867 6.105 6.353 6.610 6.877 7.154 7.442 Period 6 6.152 6.308 6.468 6.633 6.802 6.975 7.336 7.716 8.115 8.536 8.977 9.442 9.930 Period 7 7.214 7.434 7.662 7.898 8.142 8.394 8.923 9.487 10.089 10.730 11.414 12.142 12.916 Period 8 Period 9 Period 10 8.286 8.583 8.892 9.214 9.549 9.369 9.755 10.159 10.583 11.027 11.491 12.488 13.579 10:462 10.950 11.464 12.006 12.578 13.181 14.487 15.937 17.549 9.897 10.637 11.436 12.300 13.233 14.240 15.327 16.499 14.776 16.085 17.519 19.086 20.799 19.337 21.321 23.521 25.959 Period 11 11.567 12.169 12.808 13.486 14.207 14.972 16.645 18.531 20.655 12.683 13.412 14.192 15.026 15.917 16.870 18.977 21.384 24.133 Period 12 13.809 14.680 15.618 16.627 17.713 18.882 21.495 24.523 28.029 Period 13 14.947 15.974 17.086 18.292 19.599 21.015 24.215 27.975 32.393 Period 14 Period 15 16.097 17.293 18.599 20.024 21.579 23.276 27.152 31.772 37.280 Period 20 22.019 24.297 26.870 29.778 33.066 36.786 45.762 57.275 72.052 Period 25 28.243 32.030 36.459 41.646 47.727 54.865 73.106 98.347 133.334 34705 40.500 47675 66.085 79 058 113 283 164 494 241 333 23.045 25.733 28.755 32.150 27.271 30.850 34.931 39.581 32.089 36.786 42.219 48.497 37.581 43.672 50.818 59.196 43.842 51.660 60.965 72.035 91.025 115.380 146.628 186.688 66 139 181.871 356 787 249 214 342.603 471.981 530.312 790 948 1 181 882 Reference Future Value of $1 Periods 1% 2% 3% 4% 5% 6% 8% 10% 12% Period 1 1.010 1.020 1.030 1.040 1.050 1.060 Period 21 1.020 1.040 1.061 1.082 1.103 Period 3 1.030 1.061 1.093 1.125 1.158 Period 4 1.041 1.082 1.126 Period 5 1.051 1.104 1.159 Period 6 1.062 1.126 1.194 1.265 Period 7 1.072 1.149 1.230 1.316 1.124 1.166 1.210 1.254 1.300 1.191 1.260 1.331 1.405 1.482 1.170 1,216 1.262 1.360 1.464 1.574 1.689 1.217 1.276 1.338 1.469 1.611 1.762 1.925 1.340 1.419 1.587 1.772 1.974 2.195 1.407 1.504 1.714 1.949 2.211 2.502 14% 16% 1.080 1.100 1.120 1.140 1.160 1.346 1.561 1.643 1.728 1.811 1.939 2.074 18% 20% 1.180 1.200 1.392 1.440 2.100 2.288 2.488 2.436 2.700 2.986 2.826 3.185 3.583 Period 8. 1.083 1.172 1.267 1.369 1.477 1.594 1.851 2.144 2.476 2.853 3.278 3.759 4.300 Period 9 1.094 1.195 1.305 1.423 1.551 1.689 1.999 2.358 2.773 3.252 3.803 4.435 5.160 Period 10 1.105 1.219 1.344 1.480 1.629 1.791 2.159 2.594 3.106 3.707 4.411 5.234 6.192 Period 11 1.116 1.243 1,384 1.539 1.710 1.898 2.332 2.853 3.479 4.226 5.117 6.176 7.430 Period 12 1.127 1.268 1.426 1.601 1.796 2.012 2.518 3.138 3.896 4.818 5.936 7.288 8.916 Period 13 1.138 1.294 1.469 1.665 1.886 2.133 2.720 3.452 4.363 5.492 6.886 8.599 10.699 Period 14 1.149 1.319 1.513 1.732 1.980 2.261 2.937 3.797 4.887 6.261 7.988 10.147 12.839 Period 15 1.161 1.346 1.558 1.801 2.079 2.397 3.172 4.177 5.474 7.138 9.266 11.974 15.407 Period 20 1.220 1.486 1,806 2.191 4.661 6.727 9.646 Period 25 1.282 1.641 2.094 2.666 Period 30 1.348 1.811 Period 40 1.489 2.427 3.243 2.208 3.262 4.801 2.653 3.207 6.848 10.835 17.000 26.462 40.874 62.669 95.396 3.386 4.292 4.322 5.743 10.063 17.449 29.960 50 950 85.850 143.371 237.376 7.040 10.286 21.725 45.259 93.051 13.743 19.461 27.393 38.338 188.884 378.721 750.378 1,469.772 Water World is considering purchasing a water park in Oakland, Calfomia, for $2,100,000. The new facility will generate annual net cast inflows of $530,000 for eight years. Engineers estimate that the facility will remain use for eight years and have no residual value. The company uses straight the depreciation. Its owners want payback in less than five years and an ARR of 10% or more Management uses nature (Cck the on to view the present value annuity table) (Click the loon to view the future velas anuty lable) (Click the icon to view the present value table) (Click the icon to view the future value table) Requirement 1. Compute the payback period, the ARR, the NPV, and the approximate IRR of this investment. If you use the tables 30 compute the RR answer with the docent interest rate shown in the tables) (Round the payback period to one decimal place.) The payback period (in years) is (Round the percentage to the nearest tenth percent) The ARR (accounting rate of return) is (Round your answer to the nearest whole dollar) Net present value The IRR internal rate of return) is between Requirement 2. Recommend whether the company should invest in this project Recommendation