River Wild is considering purchasing a water park in Newark, New Jersey, for $$2,000,000.$ The new facility will generate annual net cash inflows of $$515,000$ for eighteight years. Engineers estimate that the facility will remain useful for eighteight 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.

$1.$ 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.