River WildRiver Wild is considering purchasing a water park in Newark, New JerseyNewark, New Jersey, for $ 2,300,000. The new facility will generate annual net cash inflows of $ 515,000 for ten years. Engineers estimate that the facility will remain useful for

ten 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 14% hurdle rate on investments of this nature.

The payback period is ______ years. (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 is ______ The IRR (internal rate of return) is between_____:

Recommend whether the company should invest in this project.

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