River Wild is considering purchasing a water park in Atlanta, Georgia, 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 remain useful for eight years and have no residual value. The company uses straight-line depreciation. Its owners want payback in less than five years and an ARR of 10% or more. Management uses a 12% hurdle rate on investments of this nature. (Click the icon to view the present value annuity table.) (Click the icon to view the present value table.) (Click the icon to view the future value annuity table. (Click the icon to view the future value table.) Read the requirements Requirement 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.) (Round the payback period to one decimal place) The payback period is lvears Reference 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 1.942 1.9131.886 1.859 1.833 1.7831.736 1.6901.6471.605 1.566 1.528 2.9412.884 2.829 2.775 2.723 2.673 2.577 2.487 2.402 2.322 2.246 2.174 2.106 3.902 3.808 3.717 3.630 3.546 3.465 3.312 3.170 3.037 2.914 2.798 2.690 2.589 4.853 4.713 4.580 4.452 4.329 4.2123.993 3.791 3.605 3.433 3.274 3.127 2.991 5.795 5.601 5.417 5.2425.076 4.917 4.623 4.355 4.111 3.889 3.6853.498 3.326 6.728 6.472 6.230 6.002 5.786 5.5825.206 4.868 4.564 4.288 4.039 3.812 3.605 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 8.566 8.1627.786 7.4357.108 6.802 6.247 5.759 5.328 4.946 4.607 4.303 4.031 9.471 8.983 8.530 8.1117.722 7.360 6.710 6.145 5.650 5.216 4.833 4.494 4.192 10.368 9.7879.253 8.760 8.3067.887 7.139 6.495 5.938 5.4535.029 4.656 4.327 11.255 10.575 9.954 9.3858.8638.384 7.536 6.814 6.1945.660 5.197 4.793 4.439 12.134 11.348 10.635 9.986 9.3948.853 7.904 7.1036.424 5.842 5.3424.910 4.533 13.004 12.106 11.296 10.563 9.899 9.295 8.244 7.3676.628 6.0025.468 5.0084.611 13.865 12.849 11.938 11.118 10.380 9.7128.5597.606 6.8116.142 5.575 5.092 4.675 18.046 16.351 14.877 13.590 12.462 11.470 9.818 8.5147.4696.623 5.9295.353 4.870 22.023 19.523 17.413 15.622 14.094 12.783 10.675 9.077 7.8436.8736.097 5.467 4.948 25.808 22.396 19.600 17.292 15.372 13.765 11.258 9.4278.055 7.003 6.177 5.517 4.979 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 Future Value of Annuity of $1 Periods 6% 1.000 2.030 3.091 4.184 5,309 5% 1.000 2.050 3.153 4.310 5.526 1.000 2.060 3.184 4375 5.637 8% 1.000 2.080 3.246 4.506 5.867 10% 1.000 2.100 3.310 4.641 6.105 1.000 2.120 3.374 4.779 6.353 1.000 2.140 3.440 4.921 6.610 1.000 2010 3.030 4.060 5.101 6.152 7.214 8.286 9.369 10.462 11.567 12.683 13 809 14.947 16.097 1.000 2.020 3.060 4.122 5.204 6.308 7.434 8.583 9.755 10.950 12.169 13.412 14.680 15.974 17.293 24 297 32.030 40.568 60.402 1.000 2040 3.122 4.246 5.416 6.633 7.898 9.214 10.583 12.006 13.486 15.026 16.627 18 292 20.024 29.778 41.646 56.085 95.026 6.468 7.662 B.892 10.159 11.464 12.808 14.192 15,618 17.086 18500 6.802 8.142 9.549 11.027 12578 6.975 7.336 8.394 8.923 9.897 10.637 11.491 12488 13.181 14487 14.972 16.645 16.870 18.977 18 R2 21.495 21.015 24.215 23.276 27.152 36.788 45.762 54.865 73.106 79.058 113283 154.762259.057 14.207 15.917 17.713 19.599 21.579 16% 18% 20% 1.000 1.000 1.000 2.160 2.180 2 200 3.506 3.572 3.640 5.066 5.215 5.368 8.877 7.154 7.442 8.977 9.442 9.930 11.414 12.142 12.916 14.240 15.327 16.499 17.519 19.086 20.799 21321 23.521 25.959 25.733 28.755 32.150 30.850 34.931 39.581 36.785 42.219 48.497 43.672 50.818 59.196 51.660 60.965 72.035 115 380 146.628 186.688 249.214 342.603 471.981 530.312790.948 1,181.882 2,360.757 4,163.2137 ,343.858 7.716 8.115 8.536 9487 10,089 10.730 11.436 12.300 13.233 13.579 14.776 16.085 15.937 17.549 19.337 18.531 20.655 23.045 21.384 24.133 27.271 24 523 28,029 32.089 27.975 32.393 37.581 31.772 37280 43.842 57 275 - 72.05291025 98.347 133.334 181.871 164.494 241.333356.787 356.787 442.593767.091 1,342.025 22.019 28.243 34.785 4R 885 26.870 36.459 47.575 75401 33066 47.727 66.439 120.800 Present Value of $1 Periods 10% 7 1% 0.990 0.980 0.971 0.961 0.951 0.942 0.933 0.923 0.914 0.905 0.896 0.887 0.879 0.870 0.861 0.820 0.780 0.742 0.672 2% 3% 4% 15% 0.980 0.971 0.962 0.952 0.943 0.926 0.961 0.943 0.925 0.907 0.890 0.857 0.942 0.915 0.889 0.864 0.840 0.794 0.924 0.888 0.855 0.823 0.792 0.735 0.906 0.863 0.822 0.784 0.747 0.681 0.888 0.837 0.790 0.746 0.705 0.630 0.871 0.813 0.760 0.7110.665 0.583 0.853 0.789 0.731 0.677 0.627 0.540 0.837 0.766 0.703 0.6450.592 0.500 0.820 0.744 0.676 0.614 0.558 0.463 0.8040.722 0.650 0.585 0.527 0.429 0.788 0.701 0.625 0.557 0.497 0.397 0.773 0.681 0.601 0.530 0.4690.368 0.758 0.661 0.577 0.505 0.442 0.340 0.743 0.642 0.555 0.481 0.417 0.315 0.673 0.5540.456 0.377 0.312 0.215 0.610 0.478 0.375 0.295 0.233 0.146 0.552 0.412 0.308 0.231 0.174 0.099 0.453 0.307 0.208 0.142 0.097 0.046 0.909 0.826 0.751 0.683 0.621 0.564 0.513 0.467 0.424 0.386 0.350 0.319 0.290 0.263 0.239 0.149 0.092 0.057 0.022 12% 14% 16% 18% 20% 0.893 0.877 0.862 0.847 0.833 0.797 0.769 0.743 0.7180.694 0.712 0.675 0.641 0.609 0.579 0.636 0.592 0.552 0.516 0.482 0.567 0.519 0.476 0.437 0.402 0.507 0.456 0.410 0.370 0.335 0.452 0.400 0.354 0.314 0.279 0.4040.351 0.305 0.266 0.233 0.361 0.308 0.263 0.225 0.194 0.322 0.270 0.227 0.191 0.162 0.287 0.237 0.1950.162 0.135 0.257 0.208 0.168 0.137 0.112 0.229 0.182 0.145 0.116 0.093 0.205 0.160 0.125 0.099 0.078 0.183 0.140 0.108 0.084 0.065 0.104 - 0.073 0.051 0.037 0.026 0.059 0.038 0.024 0.0160.010 0.033 0.0200.0120.007 0.004 0.0110.005 0.003 0.001 0.001 11 12 Future Value of $1 12% 18 1.180 1% 1.010 1020 1.030 1.041 1.051 1.062 1.072 1.083 1.094 1.105 1.040 1082 1.125 1.170 1.217 1050 1.103 1.158 1.216 1.276 1.080 1.166 1.260 1.360 10% 1.100 1.210 1.331 1.464 1.611 1.060 1.124 1.191 1.262 1.338 1419 1.504 1.594 1689 1.120 1.254 12405 1.574 1.762 16% 1.160 1.346 1.561 1.811 2.100 1020 1.040 1,061 1.082 1.104 1.126 1.149 1.172 1.195 1219 1.469 1.772 1.974 2211 2476 1.030 1.051 1.093 1.126 1.159 1.194 1.230 1.267 1.305 1,344 1.384 1426 1469 1.513 1.558 1806 2.094 2427 3.262 1.949 2144 2358 2.594 2.773 3106 14% 1.140 1.300 1.482 1689 1.925 2.195 2.502 2.853 3.252 3.707 4 226 4.818 5492 6.261 7.138 13.743 26.462 50.950 188.884 1.265 1315 1.369 1423 1480 1.539 1601 1,665 1.732 1801 2.191 2.666 3.243 4801 1.587 1.714 1.851 1.999 2.159 2332 2518 2720 2937 3.172 1.791 1.392 1.643 1.939 2 288 2.700 3.185 3.759 4435 5.234 6.176 7 2R 8.599 10 147 11.974 1.340 1.407 1477 1.551 1.629 1.710 1.796 1.886 1940 2.079 2653 3.386 4322 7.040 1.116 1.127 20% 1.200 1.440 1.728 2074 2488 2.988 3.583 4.300 5.160 6.192 7.430 8.916 10.699 12 839 15.407 38 338 95.396 237376 1.469.772 1.243 1.268 1898 2012 2436 2826 3.278 3.803 4.411 5.117 5 935 6,886 7988 9.266 19.461 40.874 85.850 378.721 1.294 2133 1.138 1.149 1.161 1 319 1 346 2.853 3.138 3452 3.797 4.177 6.727 10.835 17.449 45259 2251 2397 3.479 3.896 4.363 4887 5474 9.646 17.000 29.960 93.051 1220 1.282 1 MB 1.486 1641 1.811 2208 3.207 4292 5743 10 286 4661 6.848 10.063 21.725 27.393 62669 143.371 750,378 1489