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Solve all 4 parts please! P12-57A (similar to) Question Help O Ocean World is considering purchasing a water park in Newark, New Jersey, for $1,900,000.
Solve all 4 parts please!
P12-57A (similar to) Question Help O Ocean World is considering purchasing a water park in Newark, New Jersey, for $1,900,000. The new facility will generate annual net cash inflows of $490,000 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 12% or more. Management uses a 10% hurdle rate on investments of this nature. (Click the icon to view the present value annuity table.) 3 (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 years. Enter any number in the edit fields and then click Check Answer. 4 4 partaining parts Clear All 4 remaining CheckStep by Step Solution
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