* 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 project. for eight years Ocean World is considering purchasing a waterpark in San Diego, California for 2.100,000. The new facility will generate annual refcash inflows of $55.000 for eight years Engineers estimate that the facility will remains and have no residual value. The companyies ragine depreciation is owners want payback in less than five years and an ARR of 10 or more Management sa 16 urdere on investments of this mature Click the icon to view the presente annuity table) the con to view the present value table) ference on to view the future value annuity tabi) Chick the icon to view the Mure Value Read themes Requirement 1. Compute the payback period, the AAR, the NPV and the approximate one decimal place) of this investment (if you use the table to come the IRR answer with the closest terest rate shown in the tables) Round the payback periodo The payback periodis years Round the percentage to the rest oth percent) The ARR (ccounting rate of returns (Round your answer to the whole dollar) Net present values The IRR (internal rate of retum) is between Requirement 2. Recommend whether the company should invest in this Recommendation an Diego, California, for $2,100,000. The new facility will generate annual net cash inflows of $535,000 for eight years. Engineers e ine dopcinion H D Want naubackin lace than five adas ARROLL AR MARGmant une hundle rate mble.) A Reference ble.) the N st rate! 4.917 Present Value of Annuity of $1 Periods 1% 2% 3% 4% 5% 6% 8% 10% 12% 14% 16% 18% 20% 0.990 0.980 0.971 0.962 0.952 0.943 0.926 0.909 0.893 0.877 0.862 0.847 0.833 1.970 1.942 1.913 1.886 1.859 1.833 1.783 1.736 1.6901.647 1.605 1.566 1.528 3 2.9412.884 2.829 2.775 2.723 2.673 2.577 2.487 2402 2.322 2.246 2.174 2.106 3.902 3.808 3.717 3.630 3.546 3465 3.312 3.170 3.037 2.914 2.798 2.690 2.589 5 4.8534 .7134.580 4.452 4.329 4.212 3.993 3.791 3.605 3.433 3.274 3.127 2991 6 5.795 5.601 5.417 5.242 5.076 4.623 4.355 4.111 3.889 BAG3 3.685 885 3.498 3.326 6.728 6.472 6.230 6.002 5.786 5.5825.20648684.564 4.288 4.039 3.812 3.605 8 7.652 7.325 7,020 6.733 6.463 6.210 5.747 5.335 4.968 4.639 4.344 4.078 3.837 9 8.566 8.1627.786 7.435 7.108 6.802 6.247 5.759 5.328 4.9464.607 4.303 4.031 109.471 8.983 | 8.530 8.1117.722 7.360 6.710 6.145 5.6505.216 4.833 4.494 4.192 11 10.3689.787 9.253 8.760 8.3067.887 7.139 6.495 5.938 5.453 5.029 4.656 4327 12 11 255 10.575 9.9549.385 8.863 8.384 7.536 6.8146.1945.660 5.197 4.793 13 12.134 11.348 10.6359.9869.394 8.853 7.904 7.103 6.424 5.842 5.3424.910 4.533 14 13.004 12.106 11.296 10.563 9.899 9.2958.244 7.367 6.628 6.002 5.468 5.008 4.611 15 13.865 12.849 11.938 11.118 10.380 9.712 8.569 6.142 5.575 5.092 4.675 18.046 16.35 14.877 13.590 12.46211470 9.818 8.5147.469 6.623 5.929 5.353 4.870 22.023 19.523 17.413 15.622 14.094 12.783 10.675 9.077 7.843 6.873 6.097 5.467 4.948 25,808 22 396 19.600 17.292 15 372 13.765 11.2589.4278.055 7.003 6.177 5517 4979 32.835 27.355 23.115 19.793 17.159 15.046 11.925 9.7798.244 7.105 | 6.233 5.548 4.997 should in Print Done tinue to the next question chasing a waterpark in San Diego, California, for $2,100,000. The new facility will generate annual net cash inflows of $535,000 for eight years, Engineers estimate that the facility will company ces of this natu e present i Reference e future va Future Value of Annuity of $1 10% payback po tables) (Roun 1000 2040 1000 2080 1.000 2010 3.030 4060 1 000 2010 3245 2.180 1000 2.100 3310 4641 6.105 years. 1000 2050 3.153 4310 5.526 6.802 4246 4.375 4506 5101 5416 nearest to 7214 8206 9389 10482 of return) is 5.867 7.336 8.923 10.637 12.488 6.975 8394 9.897 11491 13.181 1000 1.000 2.020 2030 3060 3091 4122 4.184 5.204 5.309 6,308 6.468 7434 7662 85838892 9755 10.159 10.950 11464 13169 12.08 13412 14,192 14.680 15.618 15.974 17 ORE 17.280 18.50 24 297 25 870 12.030 16.490 10.568 7716 9482 11036 13579 15 937 nearest whole 12% 20% 1000 1000 1000 2120 2140 2160 2200 3.374 3.506 3572 1640 4.779 4921 5066 5215 5368 6.353 6.610 6.877 7.154 142 8.115 8.536 8.977 9.442 9.930 10089 10.730 11414 12 12 12916 12 300 13223 14240 15 127 16499 14.776 16085 17 519 190 20790 17 549 19.337 21 121 23521 25 959 20655 23.045 25.730 28755 12150 24.133 27 271 3050 M31 39 581 20.029 32 0197 42219 48497 12390 672 50 818 59.190 37.250 510 72035 11550 14 1 1334 209 214 30 60 4711 201310 1977 51032 790 787 09112220774137 7,898 9214 10563 12.006 13.486 15.026 16.627 18.232 20.034 11567 9549 11027 12.578 14 207 15.917 17 713 19599 21519 39.000 12013 14.972 16870 1882 21.015 22.276 16.645 1977 21.495 24 215 27.152 18 531 21 384 24573 27.975 31.772 urn) is betweel end whether the 57 275 28 29 S4 ROS 79 sa 56 419 120 800 736 113 283 259.057 2.590 Print Done at felds and then continue to the next question Curs ( complete erk in San Diego, California, for $2,100,000. The new facility will generate annual net cash inflows of $535,000 for eight years. Engineers estimate that th aight-line d a tion h e rate on investmen andan ABD ALLA MAGO nuity table.) Reference uity table.) Present Value of $1 16% me ARR, the N strate shown in the 8% 10% 0.926 0.9251 0.909 0.857 0.825 0.794 0.751 0.735 0.683 0.621 0.564 cent) 0.630 0.513 25 0.314 7%. 0452 0.627 0266 Periods 1% 2% 3% 0.990 0.980 0.971 0.980 0.961 0.943 0.971 0.942 0.915 0.951 0.924 0.888 0.951 0.906 0.863 0.942 0.888 0.837 0.933 0.871 0.813 0.923 0.853 0.789 0.914 0.837 0.766 10 0.905 0.820 0.744 110 .896 0.804 0.722 12 0.887 0.788 0.701 0.879 0.773 0.681 0.870 0.7580.661 0.861 0.743 0.642 10.820 0.673 0.554 0.780 0.610 0.478 0.742 0.552 0.412 400.6720453 0.307 0.500 4% 0.962 0.925 0.889 0.855 0.822 0790 0.760 0.731 0.703 0.678 0.650 0.625 0.601 0.577 0.555 0.456 0.375 0.308 0.208 5% 6% 0.962 0.943 0.907 0.890 0.854 0.840 0.623 0.792 0.784 0.746 0.711 0.677 0.645 0.592 0.614 0.558 0.585 0.527 0.557 0.530 0.505 0.481 0.377 0.295 0.233 0.231 0.174 0.1420.097 0.467 0.424 0.386 0.350 0.319 0.263 0.239 0.149 0.092 0.057 0.022 12% 14% 0.893 0.877 0.797 0.769 0.712 0.675 0.536 0.592 0.567 0.519 0.507 0.456 0.400 0.351 0.308 0.322 0.270 0.287 0.237 0.208 0.182 0.160 0.183 0.140 0.104 0.073 0.059 0.038 0.033 0.020 0.0110.005 18% 20% 0.862 0.847 0.833 0.718 0.694 0.641 0.609 0.579 0.552 0.516 0.482 0.437 0.402 0410 0.370 0.335 0.279 0.233 0.228 0.194 0.227 0.191 0.162 0.135 0.168 0.112 0.145 0.116 0.093 0.125 0.099 0.078 0.108 0.084 0.065 0.051 0.037 0.026 0.024 0.0160.010 0.0120.007 0.004 0.003 0.001 0.001 14 0.205 mpany should in 0.215 0.146 0.099 0.046 Print Done en continue to the next question. V i e LIHUSU UJUUTIL Yudis. HGS GODU U U havdARRAROMA panyes sent Reference are val Future Value of 51 3% 14% ack pe 1030 1% 1010 1.020 1030 1.060 1080 1.061 1.093 12% 1.120 1254 1.405 5% 1.050 1.103 1.158 1216 1 276 1.124 10% 1.100 1210 1.331 1.454 1511 4% 1.040 1.062 1.125 1.170 1 217 1.265 1316 1260 16% 1.160 1.346 1.581 1.811 2100 1041 2% 1020 1.040 1061 1082 1.104 1.126 1.149 1.172 1.195 1.219 1.191 1 262 1160 1 574 1338 1.762 1051 1.062 1,072 1,083 resten 1 340 1419 1587 1702 2436 1607 1504 1949 2825 1369 1.140 1.300 1.482 1689 1925 2195 2502 2853 3252 3.707 4226 4818 5.492 6261 m) is it whole 1.159 1.194 1.230 1.267 1305 1.344 1384 1428 1469 1513 1.714 1.851 1.999 2.159 1094 1477 1.551 1,629 1974 2211 2476 2.773 3.106 3.479 2.144 2358 2.594 2853 3.278 3803 4.411 1.423 1.480 1.539 1.601 1.105 18% 20% 1180 1.200 1.392 1.440 1843 1.728 1939 2074 220 2488 2700 2986 3.185 3583 3.759 4.300 4.435 5.160 5234 6192 6.178 7430 7289 8599 10.699 10.107 122309 11 974 15.407 27.390 62 569 95 396 143371 217 378 750 3781469772 1.116 1710 1243 1268 1.594 1.689 1.791 1898 2012 2.133 2.261 2.397 3207 4292 5.743 10 286 2332 2.518 2720 1665 betwee 1.127 1.138 1.149 1.161 1220 1.282 2937 1319 1.346 3452 3.797 4.177 7.138 hether the 14 5.117 5938 BRE 7.988 9.266 19.461 401874 85 850 378 721 1.732 1.B01 2.191 2.666 3243 1.806 2094 4.363 4887 5.474 9.646 17 000 29 960 93.051 3.172 4661 M40 10.060 21.725 1641 6727 10.835 17.449 45.259 3386 4322 7040 13.743 26.462 50 950 2.427 322 4801 Print Done fields and then continue to the next