Rolling Wave is considering purchasing a water park in Orlando, Florida, for $2,100,000. The new facility will generate annual net cash inflows of $525,000 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 2 years. (Round the percentage to the nearest tenth percent.) The ARR (accounting rate of return) is 0 %. (Round your answer to the nearest whole dollar.) Net present value $ The IRR (internal rate of return) is between Requirement 2. Recommend whether the company should invest in this project. Recommendation: Enter any number in the edit fields and then continue to the next question. The IRR (internal rate of return) is between Requirement 2. Recommend whether the c 16% and 18% Recommendation: 20% and 22% 22% and 24% Enter any number in the edit fields and th 18% and 20% Requirement 2. Recommend whether the company should invest in this project. Recommendation: Enter any number Do not invest in the new facility. the next question. Invest in the new facility. i Reference Periods the drer ute on A 18% 0.847 1.566 2.174 2.690 3.127 3.498 3.812 4.078 4.303 payo Present Value of Annuity of $1 1% 2% 3% 4% 5% 6% 8% 10% 12% 14% 16% 0.990 0.980 0.971 0.962 0.952 0.943 0.9260.9090.893 0.877 0.862 1.970 1.942 1.913 1.886 1.859 1.833 1.783 1.736 1.690 1.647 1.605 2.9412.884 2.8292.775 2.723 2673 2.577 2487 2.402 2.322 2.246 3.902 3.8083.717 3.630 3.546 3.465 3.312 3.170 3.037 2.914 2.798 4.853 4.713 4.580 4.452 4.329 3.993 3.791 3.605 3.433 3.274 5.795 5.601 5.417 5.242 5.076 4.917 4.623 4.355 4.111 3.889 3.685 6.728 6.472 6.230 6.002 5.786 5.582 5.206 4.868 4.564 4.288 4.039 7.652 7.3257.020 6.733 6.463 6.210 5.747 5.336 4.968 4.639 4.344 8.5668.162 7.786 7.435 7.108 6.802 6.247 5.759 5.328 4.946 4.607 9.471 8.983 8.530 8.111 7.360 6.710 6.145 5.650 5.216 4.833 10.368 9.7879.253 8.760 8.306 7.887 7.139 6.495 5.938 5.453 5.029 11.255 10.575 9.954 9.385 8863 7.536 6.814 6.194 5.660 5.197 12.134 11.348 10.635 9.986 9.394 8.853 7.904 7.1036.424 5.842 13.004 12.106 11.296 10.563 9.899 9.295 8.244 7.367 6.628 6.002 5.468 13.865 12.849 11.938 11.118 10.380 9.712 8.559 7.606 6.811 6.142 5.575 18.046 16.351 14.877 13.590 12.462 11.470 9.818 8.514 7469 6.623 5.929 22.023 19.523 17.413 15.622 14.094 12.783 10.675 9.077 7 843 6.873 6.097 25 808 22 396 19.600 17.292 15 372 13.765 11.258942780557.003 6.177 32.836 27355 23.115 19.793 17.159 15.046 11.925 9.7798244 7.1056.233 hd ti c 4 494 20% 0.833 1.528 2.106 2.589 2.991 3.326 3.605 3.837 4.031 4.192 4.327 4.439 4.533 4.611 4.675 4.870 4.948 4.979 4.997 RR 4.656 4.793 ndy 5.342 4.910 5.008 ores 5.092 IRR 868 5.353 5467 5517 5.548 Jirer mm Print Done Reference any nurd the uirer pute pay und te Periods 1% 0.990 0.980 0.971 0.961 0.951 0.942 0.933 0.923 0.914 0.905 0.896 12 0.887 130.879 0.870 0.861 20 0.820 0.780 0.742 40 0.672 Present Value of $1 2% 3% 4% 5% 6% 8% 10% 0.980 0.971 0.962 0.952 0.943 0.926 0.909 0.961 0.943 0.925 0.907 0.890 0.857 0.826 0.942 0.915 0.889 0.864 0.840 0.794 0.751 0.9240.888 0.855 0.823 0.792 0.735 0.683 0.906 0.863 0.822 0.784 0.747 | 0.681 0.621 0.888 0.837 0.790 0.746 0.705 0.630 0.564 0.871 0.813 0.760 0.711 0.665 0.583 0.513 0.853 0.789 0.731 0.677 0.627 0.540 0.467 0.837 0.766 0.703 0.6450.592 0.500 0.424 0.820 0.744 0.676 0.614 0.558 0.463 0.386 0.8040.722 0.650 0.585 0.527 0429 0.350 0.788 0.701 0.625 0.557 0.497 0.3970319 0.773 0.681 0.601 0.530 0.4690.368 0.290 0.758 0.661 0577 0.505 0.442 0 340 0.263 0.743 06420 555 0.481 0.4170315 0.239 0.673 0.554 0.456 0.377 0.312 0 215 0.149 0.6100478 0.375 0.295 0.233 0.146 0.092 0.562 0.412 0.308 0.231 0.174 0 099 0.057 0.453 0.307 0208 0.142 0.097 0046 0.022 12% 14% 16% 18% 20% 0.893 0.877 0.862 0.847 0.833 0.797 0.769 0.743 0.694 0.712 0.675 0.641 0.609 0.579 0.636 0.592 0.5620.516 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 0.4040.3510.305 0.266 0.233 0.361 0.308 0.263 0.225 0.194 0.322 0.270 0.227 0.19 0.162 0.287 0.237 0.195 0.162 0.135 0.257 0.2080.168 0.137 0.112 0229 0.1820.145 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 0.026 0.0590.038 0.024 0.0160.010 0.033 0.020 0,012 0.007 0.004 0.0110.005 0.003 0.001 0.001 ARR Sundy at pres me IRR equirer Recomm Print Done inter any i Reference Periods 8% 10% 1.100 2% 1.020 1.040 1.061 1.082 1.104 OW 4% 1.040 1.082 1.125 1.170 1.217 5% 1.050 1.103 1.158 1.216 1.276 1.210 1% 1.010 1.020 1.030 1.041 1.051 1.062 1.072 1.083 1.094 1.105 1.116 1.127 1.138 1.149 1.161 1.220 1282 1.348 489 1.126 1.149 1.172 1.195 1.219 3% 1.030 1.061 1.093 1.126 1.159 1.194 1.230 1.267 1.305 1.344 1.384 1.426 1.469 1.513 1.558 1.806 2.094 2.427 3.262 1.265 1.316 1.369 1.423 1.480 1.340 1.407 1.477 1.551 1.629 Future Value of $1 6% 1.060 1.080 1.124 1.166 1.191 1.260 1.262 1.360 1.338 1.469 1.419 1.587 1.504 1.714 1.594 1.851 1.689 1.999 1.791 2.159 1.898 2.332 2.012 2518 2.133 2.720 2.261 2.937 2.397 3.172 3.207 4.661 4.292 6.848 5.743 10.063 10.286 21.725 1,331 1.464 1.611 1.772 1.949 2.144 2.358 2.594 2.853 3.138 3.452 3.797 4.177 12% 1.120 1.254 1.405 1.574 1.762 1.974 2.211 2.476 2.773 3.106 3.479 3.896 4.363 4.887 5.474 9.646 17.000 29.960 9 3.051 14% 1.140 1.300 1.482 1.689 1.925 2.195 2.502 2 853 3.252 3.707 4226 4.818 5.492 6.261 7.138 13.743 26.462 50.950 188 884 16% 1.160 1.346 1.561 1.811 2100 2.436 2826 3278 3.803 4.411 5.117 5.936 6.BB6 7.988 9.266 1.539 1.710 1.796 1.980 2.079 1.243 1.268 1.294 1.319 1.346 1.486 1.641 1.811 2208 1.601 1.665 1.732 1.801 2.191 2.666 3.243 4.801 S88 W 6.727 10.835 17.449 45.259 19.461 40.874 85.850 378.721 Print Done