Sharkey's Fun Center is considering building a water slide for its customers and gathered the following information: a. The water slide would cost $420,000, have a 12-year useful life with no salvage value and be depreclated using the straight-line method. b. To make room for the water stide, several fides would be dismantled and sold. These rides are fully depreclated, but they courd be sold for $108,500 to a nearby amusement park. c. The water slide would attract 50,000 more customers per year who each pay the company's usual admission price of $4,30 per person. d. The water slides' annual incremental operating expenses would be solaries, $88,000; insurance, $5,100; utilities, $13,900; and maintenance, $10,700. Required: 1. Prepare an income statement showing the water slides' expected annual net operating income. 2-a. Compute the water slides' simple rate of return. 2-b. Would the company purchase the water slide if it requires a simple rate of return of at least 15% ? 3-a. Compute the water stides' payback perlod. 3-b. Would the company purchase the woter silde if it requires a payback perlod of five years or less? Complete this question by entering your answers in the tabs below. Prenare an income statement showing the water slides' expected annual net operating incom Compute the water slides' simple rate of return. Compute the water slides' payback period. Note: Round your answer to 2 decimal places