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Splash City is considering purchasing a water park in Atlanta, Georgia, for $1,900,000. The new facility will generate annual net cash inflows of $487.000 for

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Splash City is considering purchasing a water park in Atlanta, Georgia, for $1,900,000. The new facility will generate annual net cash inflows of $487.000 for laht years, Engineers estimate that the facility will remain useful for eight years and have no residual value The company uses straight line depredation and its stockholders demand an annual return of 10% on investments of this nature. (Click the icon to view the Present Value of $1 table.) (Click the icon to view Present Value of Ordinary Annuity of S1 table.) (Click the icon to view Future Value of $1 table. (Click the icon to view Future Value of Ordinary Annuity 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.) Payback years Next, determine the formula and calculate the accounting rate of return (ARR) (Round the percentage to the nearest tenth percent, XX%) ARR Calculate the not present value (NPV). (Enter any factor amounts to three decimal places, X.XXX) Net Cash Annuity PV Factor Present Years Inflow (-10%, n-8) Value 1.8 Present value of annuity 0 Investment Net present value of the investment The IRR (internal rate of return) is between Finally, determine the formula and calculate the profitability index (Round your answer to two decimal places. XXX = Profitability Index - L Requirement 2. Recommend whether the company should invest in this projed Calculate the net present value (NPV) (Enter any factor amounts to three decimal places, X.XXX) Net Cash Annuity PV Factor Present Years Inflow (-10%, n=8) Value 1-8 Present value of annuity O Investment Net present value of the investment The IRR (Internal rate of return) is between Finally, determine the formula and calculate the profitability Index. (Round your answer to two decimal places, XXX) Profitability Index Requirement 2. Recommend whether the company should invest in this project the NPV is Recommendation: Splash City profitability index is invest in the project because the payback period is the operating life, the NPV is one, and the ARR and IRR are the company's required rate of return when the innuit fide and then continue to the next question Reference 20. 0 Ras 0634 0579 o 0422 o o o o BB B%ES o 0.63 38 86 KR o : 8 OOOOOOO 30g $8882 o Penods 1 2 3 4 5 6 9 10 14% E 15 16 17 10 990 | 0 980 | 0971 0962 352 0943 0.335 0.95 10917 O 909 10 BS3 0,87 870 1 0352 2 0 980 0 961 0943 0925 10907 0 890 0873 0,857 0842 OB250 797 19769 Lo75% 1 0743 0718 0971 0942 10.915 0.889 0 854 0.840 08160794 02 0.751 0712067s Lo658 0841 o 609 4 0.9610924 0888 0.855 0.823 0.792 0763 0,735 0700 0.683 0.636 0592 o 562 5 0 951 0906 | 0,003 O 822 O 784 | 07470713 0.681 0.650 0.621 o567 ost ! 6 0942 0.888 | 0.837 0.790 | 0746 0.705 10666 0.630 0.596 0.564 0507 0456 7 0 933 0.871 0.813 | 0760 0711 0.665 0.623 0.583 0.547 8 0. 0853 -0.789 10.731 0.67706270 582 | 0540 0502 0.467 0.914 | 0,837 0.766 0.703 0.645 0 592 0,544 0.500 0.460 10 0.905 0,820 0744 0.676 0.614 0668 042 11 0.36 0.804 0722 0 650 0 527 10.475 0.429 0 237 12 0.887 0.788 0701 0625 0.557 0497 0.444 0397 036 13 0.879 0.773 0 681 0.601 To 469 0 415 0368 0.326 0229 0.182 016 14 | 0.870 0.758 0.661 0.57 10.442 0.388 0.340 029 0 205 0.160 0.141 15 0.861 0.743 0.642 | 0.655 1 0.417 0.362 | 0315 0 275 0239 0.183 0.140 0.853 10728 0 623 | 0.534 1 0.394 0.339 TD 292 0.252 0218 0.163 0.123 0.107 0.844 0.714 0.606 | 0513 0.436 10.371 0.317 0 270 0 231 0.198 0.146 | 0.108 | 0 09 0000 0.836 0.700 0.587 0494 | 0.416 | 0.350 | | 0 296 1 250 0212 0 180 0.130 0.00 0.081 0 089 .061 19 0.828 0.606 0.570 o475 0 396 o 331 0277 0.232 0.194 | 164 | 0.116 / 0.00 0.00 0.000 0043 20 o820 10873 0.554 0456 | 03T70312 | 0 258 0.215 . 178 0.149 0.104 0073 10001 0061 0.037 0811 0.680 0538 10439 0.199 0.16 0.135 0 093 0 064 0.06 0044 0031 0803 .647 0.522 0.42 0.184 0.150 0.123 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1886 1859 1833 1:8081783 1759 1736 1690 1647 1626 1.60515661.528 3 29412.88428292.77527232673 2624 2577 2531 2.487 240223222283 2246 2.174 2.106 3.90238083.717 36303546 3.465 3,387 33123 240 3.170 3.03729142856 2798 26902 .689 5 485347134.5804452432942124100 3.9933.890 3.791 3.605 3.43333523274 3.127 2991 SITET ENER 1- 6 5 .795 5.601 5.417 5242 5.076 4.917 4.767 4.623 4.4864.355 4.111 3.889 3.784 3.685 3.498 3.326 67286.4726.2306.00267865.5825.389 5.2066.033 4.86845644288 4.160 4.0393.8123.605 765273257.0206.733 64636.2105.97136.7475.536 6.335 4.968463944874.34440783.837 9 8.566 8.1627 .786 74357.108 6.802 6.515 6.247 5.996 5.7596 .328 4.946 4.772 4.6074 303 4.031 109.471 8.9838.530 8.111 7722 7.360 | 7.024 6.710 6.418 6.145 5.6505216 5.019 4833 4494 4.192 11 10.368 9.787 9.2538.760 8.306 7.887 7.49971396.805 6.495 5.938 5453 5.2345 029 4.656 43271 112 11.255 10.6769.954 9.3858.8638.384.7.9437.5367,1616.8146.194 6.65054215.1974.7934439 113 12.134 11.348 106359 .986 9.3948.8538.358 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Lat 2672021 482 L125615762.12.2011 12.223 1992 19915 837 133 A LA 6544 999LIMI TRI SA Print Done om any list or enter any number in the input fields and then continue to the next question ruture Value UE 3% 4% 6% 103 1103 124 wn 191 1.311 1.104 1403 1611 1265 1.340 5.000 Periods 1% 5% 7% 8% 9% 10% 12% 15% 1010 1.020 1.030 1.040 1.060 1.070 1.080 1.090 1.100 1.120 1.140 1.150 1.020 1.040 1.061 1082 1.145 1.166 1.188 1.210 1.254 1.300 1.323 1.030 1061 1093 1.125 1.158 1225 1260 1295 1.331 1405 1.482 1.521 1.041 1.082 1.126 1.170 1216 262 1.360 1.574 1.689 1.749 1.051 1.159 1217 1.469 1.762 1.925 2011 1.062 1.125 1.194 1.419 1.501 1.587 1.677 1.772 1.9742.195 2313 1491230 1316 1407 1.504 1.606 1714 1.828 1949 22112502 2.660 1.172 1 267 1369 1477 1 1 594 1.718 1851 1.993 2144 2.47628533.059 1.1951.305 1.423 1.551 1.689 1.838 1.999 2172 2.358 2.773 3252 3518 1.480 1.629 1791 1967 2.159 2.367 2594 3.106 3.7074046 1.116 1.243 1.384 1.539 1.710 1.898 2.105 2332 2.580 2853 3.479 4226 4652 1.127 1.268 1.426 1.601 1.795 | 2012 2.252 2518 | 2.813 3.138 3.896 4818 5.350 13 | 1.138 1294 1469 1.665 1886 2.133 2410 2720 3.066 3.452 4.3635 492 6.153 1.149 1.319 1513 1.732 1980 2.261 25792.937 3.342 3.798 4887 6.261 7.076 151.161 1.346 1.558 1 801 2079 2397 2.759 3.172 3.642 4.177 5.474 7.138 8.137 16 1.173 1.3731.605 1.873 2 183 2540 2.952 3.426 3.970 4.595 6.130 8.137 9.358 17 1.184 1.400 1.653 1.9482 292 2693 3.1593.700 4328 6.054 6.866 9.276 10.76 18 1.1981.428 1702 2.026 2407 2854 3.380 3.996 4.717 5.5607 690 10.58 12.38 1.208 1.457 1.754 2.107 2.527 3.026 3.617 4.316 5.142 6.116 8 613 12.06 14 23 2.653 3.2073.870 4.661 5.6046.727 9.646 13.74 16.37 123215161.860 2.279 2786 3.400 4.141 5.034 6.1097.400 10.80 15.67 18.82 1245 1.546 1.916 2.370 2925 3.604 4.430 5.437 6.659 8.140 | 12.10 17.86 1.257 1.677 1974 2.465 3 072 3.820 4.741 5,8717258 8954 13.55 1270 1.608 2033 2563 3 225 4.049 5.072 6.341 7.911 9.850 15.18 1.282 1.641 2.094 2.566 3.386 4292 6 848 8 623 1083 17.00 1.295 1.673 2.157 2772 3.556 4.549 7396 9.399 1192 1.308 1.707 2221 2883 3.733 4.822 6214 7.988 10.25 13.11 21,32 1321 1.741 2.288 2.999 3.920 5.112 6.649 8.627 11 17 14 42 23.88 39 20 1.335 1.776 2.357 3.119 4.116 5.418 7.114 9317 12 17 158626 75 44.69 57.58 30 1348 1811 2427 3.243 4.322 5.743 76121006 13 27 17.45 29,95 50.9566 21 40 1.4892 2093 262 4801 7.040 102914972172314145.2693.05 188.9 267.9 50 1645.12 692 77 114718 4229 46 46 90 74 36 117 4 289 D .700 2 1084 2038 5427 & NS 88 89 88 89 19.04 on 1992% 8 88 BR BERRI Print Done st or enter any number in the input fields and then continue to the next question Reference 14% TFB | 1000 9% 10 1.000 5 .4 Future value or Drainary Annuity or 91 Periods 1% 26 3% | 5% 6% 1.CO01 11.000 1000 1.000 . 1. CCD | 1000 : 2.020 2030 2040 2050 2060 2070 200 200 3.060 3. 091 3122 3.153 3184 3215 3246 13278 - 4.122 4.184 4.246 4.310 4.375 4440 4506 4573 5204 5309 5476 5526 5637 5.751 15867 598 6.308 6468 | 663 6.802 | 6975 7153 7336 7523 7214 7434 7662 | 7 898 8.142 | 8394 8654 8923 9.20 B583 8.892 2214 9549 19897 10 260 10.64 1.6 975 1016 | 10.58 11.03 12.49 13.02 | 10 46 | 10 95 | 1146 | 2011 12.58 13.82 15.19 11.57 1281 | 1349 12 68 | 1341 14 19 13.81 14.68 10% 12. 14% | 15% 1000 100 1000 || 2100 2120 2.140 2156 3310 3374 3440 3473 4.41 | 4779 4921 4.993 6.105 | | 6.353 550 6.742 7716 8115 8536 9.487 10 09 1673 11.4 6 | 8.75 g 9.369 11% 14.49 12 17 || 14.95 1597 3 y =.=ubnB9%a28 =EB2 memmww529 nw% E8B89mm w5m 8m HBE% w8% & www a gmaa%B4 wwww939 ww 588u5mmH : 888 mw8 BmW BbEBBE%Eg _amd TP89 my www8ss m68 mm x AB FwwWE Emma HmmmmmEq wwww88wwwmW 1 16.10 7.26 | 18 64 18 43 | 2007 | 21.76 | 1961 2141 | 20.81 | | 22.02 | 24.30 36.79 41.00 24 25.78 28.68 104.8 1188 247 27.30 1376 1045 1983 1593 50.82 58.18 1182 1587 184.2 | 63.25 133 1819 2123 59.16 68 68 93 32 1992 1503 20.3 2457 35 34 40.71 | 47.08 54.67 7. 48 121.1 1694 2018.5 2836 37.05 | 42 93 | 49.97 | 56 40 | 68 53 8070 1130 | 134.2 | 1907 2929 3271 | 38.79 | 45 22 5271 62 32 | 3.64 87 35 104 0 124.1 148.5 214.5 312.1 3T2 34.78 | 40.57 47.58 | 56.03 | 66.4 79.05 4 46 1133 | 1363 1645 | 2413 3558 | 434 | 0.40 175.40 | 95.03 1208 | 1548 | 1996258 1 3379 | 4426 | 767. 1 1.342 | 1.779 FA AC (, 5 | 12 | 1527landal senz Aness Eras For Lear 1919 ) mm mumm 20- 10 : 3 B = % 99 m Print Done

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