Splash City is considering purchasing a water park in Allanta, Georgia, for $1,850,000. The new facility will generate annual net cash inflows of $481,000 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, and its stockholders demand an annual return of 10% on investments of this nature (Click the icon to virw the Present Value of $1 table.) (Click the icon to view Present Value of Ordinary Annuity of 51 table.) (Click the icon to view Future Value of $1 table.) (Click the icon to view Future Value of Ordinary Annulty of 51 table.) Read the requirements. Requirement 1. Compute the payback, the ARR, the NPV, the IRR, and the profitability index of this investment. First, determine the formula and calculate payback. (Round your answer to one decimal place, XX ) Next, determine the formula and calculate the accounting rate of return (ARR) (Round the percentage to the nearest tenth percent, X%.) Calculate the net present value (NPV) (Enter any factor amounts to three decimal places, XXX ) The IRR (internal rate of retum) is between Finally, detemine the formula and calculate the profitablity index. (Round your answer to two decimal places X. ) = Profitability index Requirement 2. Recommend whether the company should invest in this project Recormmendation Splash Cliy invest in the project because the payback period is operating life, the NPV is the profitabilly index is the the company's required rate of return