Requirements 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. Print Done Present Value of $1 Periods l 1% 2% 3.% 4% 5% 6% 7% 8% 9% | 10% 12% 14% 15%, 16%, 18% 20% 1 0.990 0.980 | 0.971 0.962 0.952 | 0.943 0.935 | 0.926 0.9 17 | 0.909 0.593 | 0.87 0.570 0.862 0.847 0.833 2 0.980 0.961 0.943 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 3 0.971 0.942 0.915 0.889 | 0.864 0.840 0.81 0794 0.772 | 0.751 0.712 | 0.675 0.658 | 0.641 0.609 | 0.579 4 0.961 0.924 0.888 0.855 0.823 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 0402 0.592 0.572 0.552 0.516 6 | 0942 0.888 0.837 0.790 | 0746 0705 0.666 0.630 0.596 | 0.564 0.507 0.456 0.432 0.410 0.370 0.335 7 0.933 0.871 0.813 0.760 | 0.711 0.665 0.6231 0.583 0.547 | 0.513 0.452 0.400 0.376 0.354 0.314 0.279 8 | 0.923 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 | 0.194 308 0.284 0.263 0.225 0.194 10 | 0905 0.820 0.744 0.676 | 0.614 | 0.558 0.508 0.463 0.422 0.386 0.322 | 0.270 0.247 0.227 0.191 | 0.162 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 12 | 0.887 | 0788 | 0701 | 0.625 | 0.557 | 0.497 | 0.444 0.397 | 0.356 | 0.319 | 0.257 | 0.20s 0.187 DIbs | 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 14 | 0.870 | 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 | 0.861 | 0.743 0.642 0.555 | 0.481 | 0.417 0.362 0.315 0.275 | 0.239 0.183 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 6 0.108 0.093 0.080 0,060 0.045 18 0.836 | 0.700 | 0.587 | 0.494 | 0.4 16 0.350 0.296 | 0.250 0.212 0.180 0.130 0095 | O.081 0.069 0.051 0.038 19 0.828 | 0.686 0.570 0.475 0.396 | 0.331 0.277 0.232 0.194 | 0.164 0.116 0.083 0.070 | 0.060 0.043 | 0.031 20 | 0.820 0.673 0.554 0.456 | 0.377 | 0.312 0.258 0.215 0.178 | 0.149 0.104 0.07] 0.061 0.051 0.037 0.026 17 | 0844 | 0.714 | 0605 | 513 | 0436 | 0.371 | 0.317 0.270 0.231 | 0.198 | 0.14 21 0.811 0.660 0.538 0.439 | 0.359 | 0.294 0.242 0.199 0.164 | 0.135 0.093 | 0.064 0.053 0.044 0.031 0.022 22 0.803 0.647 0.522 0.422 0.342 0.278 0.226 | 0.184 0.150 0.123 083 0.056 0.046 0.038 0.026 | 0.018 23 | 0.795 | 0.634 | 507 | 0.406 | 0.326 | 0.262 | 0.211 | 0.170 | 0.135 | 0.112 | 0 074 0.049 | 0,040 | 0033 | 0022 | 001 s 24 0.788 0.622 0.492 0.390 | 0.310 | 0.247 0.197 0.158 0.126 | 0.102 0.066 0.043 0.035 0.028 0.019 | 0.013 25 0.780 0.610 0.478 0.375 | 0.295 | 0.233 0.184 | 0.146 0.116 | 0.092 0.059 0.038 0.030 | 0.024 0.016 | 0.010 26 0.772 0.598 0.464 0.361 | 0.281 | 0.220 0.172 0.135 0.106 | 0.084 0.053 0.03] 0.026 0.021 0.014 | 0.009 27 0.764 0.586 0.450 0.347 | 0.268 | 0.207 0.161 0.125 0.098 | 0.076 0.047 0.029 0.023 0.018 0.011 0.007 0.757 0.574 | 0437 | 0.333 | 0.255 | 0.196 0.15 . 116 | 0090 | 0.069 | 0042 | 0026 | 0020 | Dolh 010 | 0006 29 0.749 0.563 0.424 0.321 | 0.243 | 0.185 0.141 0.107 0.082 | 0.063 0.037 0.022 0.017 0.014 0.008 | 0.005 30 | 0.742 0.552 0.412 0.308 0.231 0.174 0.131 0.099 0.075 | 0.057 0.033 0.020 0.015 0.012 0.007 0.004 40 | 0.672 0.453 0.307 0.208 | 0.142 | 0.097 0.06 0.046 0.032 | 0.022 0.011 0.005 0.004 0.003 0.00 | | 0.00 | 50 0.608 0.372 0.228 0,14 0.087 0,054 0.034 0,02 0.013 0.009 0.003 0,000,0010.001 Pri Present Value of Ordinary Annuity of $1 Periods 1% 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 1.970 1.942 1.913 1.886 1.8591.833 1.8081.7831.7591736 1.6901.647 1.626 1.605.566 1.528 2.941 | 2.884 | 2 29 | 2.775 | 2.723 | 2.673 | 2.624 | 2.577 | 2.531 | 2.487 | 2.402 | 2.32 2283 | 2.246 | 2.174 | 2.06 4 3.902 3.808 3.717 3.630 3.546 3.4653.387 3.312 3.240 3.1703.037 2.914 2.855 2.798 5 4.853 4.713 | 4.580 4.452 4.329 | 4.212 4.100) 3993 3.890 | 3.791 3.605 | 3.433 3.352 | 3.274 3.127 | 2.991 6 5.795 5.601 5.417 5.242 5.076 4.917 4.767 4.6231 4.486 | 4.355 4.111 | 3.889 3.784 | 3.685 3.498 3.326 7 6.7 1 6.472 6.230 6.002 5786 5582 5.389 5.206 5.033 | 4.868 4.564 | 4.288 4.160 | 4.039 3.812 | 3.605 4.160 4.039 3.812 3,605 971 | 5.747 | 5535 | 5.335 | 4.968 | 4.639 4.487 4.344 | 4078 | 3837 8.566 8.16 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 | 4.031 9.471 8.983 | 8.530 8. 111 7.722 7.360 7.024 671 6.418 | 6.145 5.650 5.216 5.019 | 4.833 4.494 | 4.192 6.002 5.786 5.582 5.389 5.206 5.033 4.868 4.564 4.2 8 7.652 7.325 7.020 6.733 6.463 6.21 5. 9 10 11 10.368 9.787 9.253 8.760 8.306 7.887 7.4997.139 6.805 6.495 5.938 5.453 5.234 5.029 4.656 4.327 12 11.255 10.575 9.954 9.385 8.863 8.384 7.9437.5367.16 6.814 6.194 5.660 5.421 5.197 4.793 4.439 13 12. 1341 11.348| 10.635| 9.986 9.394 8.853 8.358 7.904 7.487 7.103 6.424 5.842 5.583 | 5.342 4.910 4.533 14 13.0041 12.106 11.296 10.563 9.899 9.295 8.745 8.244 7.78 7.367 6.628 | 6.002 5.724 5.468 5.008 | 4.611 15 13.8651 12.8491 11.9381 1 1.1 18 10.380| 9.712 9.108 8.559 8061 7.606 6.811 6142 5.847 | 5.575 5.092 | 4.675 092 4.675 16 14.7 1811 3.5781 12.561 11.652 10.8381 10.106 9447 8.851 8.313 7824 6.974 | 6265 5.954 | 5.669 5.162 | 4.730 17 15.562 14.292 13.166 12.166 11.274 10.477 9.76391228.5448,022 7.120 6.373 6,047 5.749 5.222 4.775 18 16.398 14.992 13.75412.659 11.690 10.828 10.0599.3728.756 8.20 7.250 6.4676.128 5.818 5.273 4.812 19 17.226 15.678| 14.324 13.134 12.085| 11.158 10.336 9.604 8.950 | 8.365 736 6.550 6.198 | 5.877 5.316 | 4.844 20 18.04 16.351 | 14.877 13.5901 12.462 11.470 10.594 9.818 9,129 8.514 7.469 | 6.623 6.259 | 5.929 5.353 4.870 2 18,857 17.011 15.415 14.029 12.821 11.764 10.836 10.0179.292 8.649 7562 6.687 6.3125.973 5.384 4.891 22 19.660 17.6581 15.937 14.451 13.1631 12.042| 11.061 10.201 9.442 | 8.772 7.645 6.743 6.359 | 6.0 11 5.410 4.909 23 20.456|18.292| 16.444| 14.857 13.489| 12.303 11.272 10.371 9.580 | 8.883 7.7 18 6.792 6.399 | 6.044 5.432 | 4.925 24 21.243 18.914 16.936 15.247 13.799 12.550 11.469 10.529 9.707 8.985 7.784 6.835 6.434 6.073 5.451 4.937 25 22.023 19.523 17.413 15.622 14.094 12.783 11.654 10.6759,823 9.077 7.843 6.873 6.464 6.097 5.467 4.948 26 22.795|20.121 | 17.877 15.983 14.375| 13.003 | 11.826 10.810| 9.929 9.161 7.896 6.906 6.491 | 6.118 5.480 | 4.956 27 23.560| 20.707 18.327 16.33 14,6431 13.2 11 11.987 10.935| 10.027| 9.237 7.943 6.935 6.514 | 6.136 5.492 | 4.964 28 24.316 21.281 18.764 16.663 14.898 13.406 12.137 11,051 10,1169,307 7984 6.96 6.5346.152 5.502 4.970 5.066 21.844 19.188 16.984 15.141 13.591 12.278 11.158 10.198 9.370 8.022 25.808 22.396 19.600 17.292 15.372 13.765 12.409 .258 10.274 9.427 8.055 7.003 6.566 6.177 5.517 4.979 40 32.835|27.355| 23.115 19.793 17.159| 15.046| 13.332 11.925 10.757| 9.779 8.244 7.105 6.642 | 6.233 5.548 | 4.997 61 6.2406 50 39. I 96 31.424| 25.730 21.482 18.256| 15.762| 13.801 12.233| 10.962 9.915 8.304 7.133 6.661 6.246 5.554 4.999 Print Done Reference Future Value of S1 Periods 1% 290 3% 4% 5% 6% 70% 8% 9% 10% 12% 14% 15% 1,010 | 1.020 | 1,030 | 1.040 1.050| 1,060 | 1,070 1.080 | 1.090 | 1.10 1.12 1.14 1.150 2 1,020 | 1.040 | 1,061 | 1082 1.103 1.124 | 1.145 1.16 1.1ss | 1.210 | 1.254 1300 1.323 3 1.03 1.061 1.093 1.125 1.158 1.191 1.225 1.260 1.295 1.331 1.405 1.482 1.521 4 1.041 | 1.082 | 1.126 | 1.170| 1.216 262 | 1.311 | 1.360| 1.412 | 1.464 1.574| 1689 1749 5 1.05 1 1.104 1.159 | 1.217 1.276 | 1.338 | 1.403 1.469 1.539 | 1.61| 1.762 1.925 | 2011 1,062 1.12 1.194 1.265 1.340 1.419 1.501 | 1.587 1.677 | 1.772 1974 2.1951 2.31 7 | 1.072 | 1.149 | 1.230 | 1.316 | 1.407 | 1.504 | 1.60 1.714 | 1.828 | 1949 | 2211 2502 | 2660 1.083 1.172.267 .369 1.477 1.594 1.718 1.8511993 2.144 2.476 2.853 3.0 1.094 1.195 1.305 1.4231.55 1.689 1.838 999 2.1722.358 2.773 3.252 3.51 10 1.105 1.219 1.344 1.480 1.629 1.791 1.967 2.159 2.367 2.594 3.106 3707 4.046 11 1.11 1.243 1.384 1.539 1.710 1.898 2.105 2.332 2.580 2.853 3.479 4.226 4.652 5.350 13 1.138 1.294 1.469 1.665 1.886 2.133 2.410 2.720 3.066 3.452 4363 5.492 6.153 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 15 1.16| 1.346 1.558 1.801 2.079 2.397 2.759 3.172 3.64) 4177 5.474 7.138 8.137 12 .127 1.268 1.426 1.6011.796 2.012 2.252 2.518 2.813 3.138 3.8 16 1.173 1.373 | 1.605 1,873 2.183 | 2.540 2.952 3.426 3.97 4.595 | 6.130 E/37 9358 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 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 8.613 12.06 14.23 20 1.220 1.48 1.806 2.191 | 2.653 | 3.207 | 3.87 4661 | 5604| 6727 | 9646 | 13.74 16.37 19 | 1.208 | 1.457 | 1.754 | 2.10 2.527 | 3.026 | 3.617 | 4.316 | 5.142 | 6.116 21 1.232 1.516 1.860 | 2.279 | 2.7 400 10.80 15.6 86 3.400 4.141 5.034 6.109 740 10.30 15.67 18.82 22 1.245 1.546 1.916 .370 2.925 3.604 4.430 5.437 6.659 8.140 12.10 17.86 21.64 23 1.257 1.577 1974 2.465 3072 3.820 4741 5.871 7.258 8.954 13.55 20.36 24.89 24 1.270 1.608 2.033 2.563 3.2254.0495.072 6.341 7.919.850 15.18 23.21 28.63 25 .282 1.64 2.094 2.666 3.386 4.292 5.427 6.848 8.623 10.83 17.00 26.46 32.92 26 | 1.295 | 1.673 2.157 | 2.772 3.556 4.549 | 5807 | 7.396 9.399 | 11.9) 19.04 30.17 7.86 27 1.308 1.707 2.221 2.883 3.733 4.822 6.214 7.988 10.25 13.11 21.32 34.39 43.54 28 1.32| 1.741 2.288 2.999 3.920 5.1 12 6.649 8.627 11.17 14.42 23.88 39.20 50.07 29 1.335 1.776 2.357 3.1 19 4.116 5.418 7.114 9.3 17 12.17 15.86 26.75 44.69 57.58 30 1.348 1.811 2.427 .243 4.322 5.743 7.612 10.06 13.27 17.45 29.96 50.95 66.21 50.95 66.21 40 1.489 2.208 3.262 | 4.801 7.040 | 10.29 | 14.9 21.72 31.41 | 45.26 93.05 188 50 1.645 2.692 4.384 7.107 11.47 18.42 29.46 46.90 74.36 I 17.4 289.0 700.2 1,084 Print Done Future Value of Ordinary Annuity of SI 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 2.010 2.020 2.030 2.040 2.050 2.060 2.070 2.080 2.090 2.100 2.120 2.140 2.150 3 3.030 3.060 3.09 3.122 3.153 3.184 3.215 3.246 3.278 3.310 3.374 3.440 3.473 4 4.060 4.122 4.184 4.246 4.3 10 4.375 4.440 4.506 4.573 4.641 4.779 4.921 4.993 5 5. 101 5.204 5.309 5.416 5.526 5.637 5.751 5.867 5.985 6.105 6.353 6.610 6.742 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 7.214 7.434 7.662 7.898 814) 8.394 8.654 8.923 9.200 9.487 10.09 10.73 11.07 8 8.286 8.583 8.892 9.214 9.549 9.897 10.260 10.64 103 11.44 12.30 13.23 13.73 9 9.369 9.755 10.16 10.58 11.03 11.49 11.98 12.49 13.02 13.58 14.78 16.09 16.79 10 10.46 10.95 11.46 12.01 12.58 13.18 13.82 14.49 15.19 15.94 17.55 19.34 20.30 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 12 12.68 13.41 14.19 15.03 15.92 16.87 17.89 18.98 20.14 21.38 24.13 27.27 29.00 13 13.81 14.68 | 15.62 16.6) 17.71 18.88 20.14 21.50 22.95 24.52 28.03 32.09 34.35 4 14.95 5.97 7.0918.29 19.60 21.02 22.55 24.21 26.02 27.98 32.3937.58 40.50 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 20.16 21.82 23.66 25.67 27.89 30.32 33.0035.95 42.75 50.98 55.72 17 18.43 20.0 21.76 23.70 25.84 28.21 30.84 33.75 36.97 40.54 48.88 59.12 65.08 18 19.61 21.41 23.4| 25.65 28.13 30.91 34.00 37.45 41.30 45.60 55.75 68.39 75.84 19 20.81 22.84 25.12 27.67 30.54 33.76 37.38 41.45 46.02 51.16 63.44 78.97 88.21 20 22.02 24.30 26.87 29.78 33.0 3679 41.00 45.76 51.16 57.28 72.05 91.02 102.4 21 23.24 25.78 28.68 31.97 35.721 39.99 44.87 50.42 5676 64.00 81.70 104.8 118.8 22 24.47 27.30 30.54 34.25 38.51 43.39 49.01 55.46 62.8 71.40 92.50 120.4 137.6 23 25.72 28.85 32.45 30.62 41.43 47.0 53.44 60.89 6953 79.54 104.6 138.3 159.3 24 26.97 30.42 34.43 39.08 44.50 50.82 8.18 6676 76.79 88.50 118.2 158.7 184.2 25 28.24 32.03 36.46 41.65 47.73 54.86 63.25 73.11 84.70 98.35 133.3 181.9 212.8 26 29,53 33.67 38.55 44.31 51.11 59. 16 6868 79.95 93.32 109.2 150.3 208.3 245.7 27 30.82 35.34 40.71 47.08 54.67 63.7 74.48 87.35 102.7 1211 169.4 238.5 283.6 28 32.13 |37.05 42.93 49.97 58.40 68.53 80.70 95.34 113.0 134.2 190.7 272.9 327.1 29 33.45 38.79 4522 52.97 62.32 7364 87.35 104.0 124.1 148.6 214.6 312.1 377.2 30 34.78 40.57 47.5856.08 66.44 79.06 94.46 113.3 136.3 164.5 241.3356.8 434. 4048.89 60.40 75.40 95.03 120.8 154.8 199.6 259.1 337.9 442.6 767.1 1,342 1,779 50 6446 8458 1 12.8 152.7 209.3 290.3 406.5 573.8 815.1 1,164 2.400 4.995 7,218 Print Done Splash City is considering purchasing a water park in Atlanta, Georgia, for $1,910,000. The new facility will generate annual net cash inflows of $472,000 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 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 (-10%, n.8) Present Inflow Years Value 1-8 Present value of annuity 0 Investment 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 Recommendation: Splash City profitability index is .the invest in the project because the payback period is the operating life, the NPV is the company's required rate of return. V one, and the ARR and IRR are