Splash Country is considering purchasing a water park in Atlanta, Georgia, for $1,800,000. The new facility will generate annual net cash inflows of $457,000 for eight years. Engineers estimate that the facility will remain useful for eight years an have no residual valus. The company uses straight-line depreciation, and its stockholders demand an annual retum of 12% on investments of this nature. (Click the icon to view the Present Value of $1 table.) ( (Click the icon to view Future Value of $1 table) Read the requires (Click the icon to view Present Value of Ordinary Annuity of $1 table) (Click the loon to view Future Value of Ordinary Annuity of $1 table) Requirement 1. Compute the payback, the ARR, the NPV, the RR, and the profitability index of this investment Fest, determine the formula and calculate payback (Round your answer to one decimal place, XX) Amount invested 1,800,000 Expected annual net cash inflow 457,000 Payback 40 years Next, determine the formula and calculate the accounting rate of retum (ARR) (Round the percentage to the nearest tenth percent, XX%) Average annual operating me Calculate the net present value (NPV) (Enter any for amounts to three decimal places, XXXXX) ARR Years Net Cash Annuity PV Fact Present Value The d Fely Fans 15-20% komme and caula hefty sound your XXXX) Choose from any lat or any number in the out feds and then continue to the next question Reference Present Value of $1 Periods 1% 2% 3% 4% 5% Period 1 0.990 0.980 0.971 0.962 0.952 Period 2 6% 0.943 0.980 0.961 0.943 0.925 0.907 0.890 0.873 Period 3 0.971 0.942 0.915 0.889 0.864 0.840 0.816 Period 4 0.961 0.924 0.888 0.855 0.823 0.792 0.763 Period 5 0.951 0.906 0.863 0.822 0.784 0.747 0.713 Period 6 0.942 0.888 0.837 0.790 0.746 0.705 0.666 Period 7 0.933 0.871 0.813 0.760 0.711 0.665 0.623 Period 8 0.923 0.853 0.789 0.731 0.677 0.627 0.582 0.630 0.596 0.564 0.507 0.583 0.547 0.513 0.452 0.540 0.502 0.467 0.404 7% 8% 9% 10% 12% 14% 15% 16% 18% 20% 0.935 0.926 0.917 0.909 0.893 0.877 0.870 0.862 0.847 0.833 0.857 0.842 0.826 0.797 0.769 0.756 0.743 0.718 0.694 0.794 0.772 0.751 0.712 0.675 0.658 0.641 0.609 0.579 0.735 0.708 0.683 0.636 0.592 0.572 0.552 0.516 0.482 0.681 0.650 0.621 0.567 0.519 0.497 0.476 0.437 0.402 0.456 0.432 0.410 0.370 0.335 0.400 0.376 0.354 0.314 0.279 0.351 0.327 0.305 0.266 0.233 Period 9 0.914 0.837 0.766 0.703 0.645 0.592 0.544 Period 10 0.905 0.820 0.744 0.676 0.614 0.558 0.508 0.463 0.500 0.460 0.424 0.361 0.422 0.386 0.322 0.308 0.270 0.284 0.263 0.225 0.194 0.247 0.227 0.191 0.162 Period 11 0.896 0.804 0.722 0.650 0.585 0.527 0.475 0.429 0.388 0.350 0.287 Period 12 0.887 0.788 0.701 0.625 0.557 0.497 0.444 0.397 Period 13 0.879 0.773 0.681 0.601 0.530 0.469 0.415 Period 14 0.870 0.758 0.661 0.577 0.505 0.442 0.388 Period 15 0.861 0.743 0.642 0.555 0.481 0.417 Period 16 0.853 0.728 0.623 0.534 0.458 Period 17 0.844 0.714 0.805 0.513 0.436 0.371 0.317 Period 18 0.836 0.700 0.587 0.494 0.416 0.350 Period 19 0.828 0.686 0.570 0.475 0.396 0.331 Period 20 0.820 0.673 0.554 0.456 0.377 0.362 0.394 0.339 0.368 0.340 0.315 0.237 0.215 0.195 0.162 0.135 0.356 0.319 0.257 0.208 0.187 0.168 0.137 0.112 0.326 0.290 0.229 0.182 0.163 0.145 0.116 0.093 0.299 0.263 0.205 0.160 0.141 0.125 0.099 0.078 0.275 0.239 0.183 0.140 0.123 0.108 0.084 0.065 0.292 0.252 0.218 0.163 0.123 0.107 0.093 0.071 0.054 0.270 0.296 0.250 0.277 0.232 0.231 0.198 0.146 0.212 0.180 0.130 0.095 0.081 0.069 0.051 0.038 0.194 0.164 0.116 0.083 0.070 0.060 0.043 0.031 0.108 0.093 0.080 0.060 0.045 0.312 0.258 0.215 0.178 0.149 0.104 0.073 0061 0.051 0.037 0.026 int 18-2 the D Period 21 0.811 0.660 0.538 0.439 0.359 0.294 0.242 Period 22 0.803 0.647 0.522 0.422 0.342 0.278 0.226 Period 23 0.795 0.634 0.507 0.406 0.326 0.262 0.211 Period 24 0.788 0.622 0.492 0.390 0.310 0.247 0.197 Period 25 0.780 0.610 0.478 0.375 0.295 0.233 0.184 Parind 26 10 722105980464 0361 0.281 0220 0172 0.199 0.184 0.164 0135 0.093 0.064 0.150 0.123 0.083 0.056 0.046 0.038 0.026 0.018 0.170 0.138 0.112 0.074 0.049 0.040 0.033 0.022 0.015 0.158 0.126 0.102 0.066 0.043 0.035 0.028 0.019 0.013 0.146 0.116 0.092 0.059 0.038 0.030 0.024 0.016 0.010 0123 0000840053 0033 0026 002110014 Lanno 0.053 0.044 0.031 0.022 er in th Print Done n de Reference a.) 5 of 5 (2 complete) NPV Period 3 Period 4 Roun Period 5 Period 6 Period 7 Period 8 Period 9 ounting y factor a Net Cas Inflow 18-20% the profitabil or in the input Future Value of $1 4% 5% 6% 7% 8% 9% 10% 1.080 1.090 1,100 1.166 1.188 1.210 12% 14% 15% 1.120 1.140 1.150 1.254 1.300 1.323 1.405 1.482 1.521 1.574 1.689 1.749 1.762 1.925 2.011 Periods 1% 2% 3% Period 1 1.010 1.020 1.030 1.040 1.050 1.060 1.070 Period 2 1.020 1.040 1.061 1.082 1.103 1.124 1.145 1.030 1.061 1.093 1.125 1.158 1.191 1.225 1.260 1.295 1.331 1.041 1.082 1.126 1.170 1.216 1.262 1.311 1.360 1.412 1.464 1.051 1.104 1.159 1.217 1.276 1.338 1.403 1.469 1.539 1.611 1.062 1.126 1.194 1.265 1.340 1.419 1.501 1.587 1.677 1.772 1.974 2.195 2313 1.072 1.149 1.230 1.316 1.407 1.504 1.606 1.714 1.828 1.949 2.211 2.502 2660 1.083 1.172 1.267 1.359 1477 1.594 1.718 1.851 1.993 2.144 2.476 2.853 3.059 1.094 1.196 1.305 1.423 1.551 1.689 1.838 1.999 2.172 2.358 2.773 3.252 3.518 1.105 1.219 1.344 1480 1.629 1.791 1.967 2.159 2.367 2.594 3.106 3.707 4.046 1.116 1.243 1.384 1.539 1.710 1898 2.105 2.332 2.580 2.853 3.479 4.226 4.652 1.127 1268 1.426 1.601 1.796 2012 2.252 2518 2813 3.138 3.896 4.818 5.350 1.138 1.294 1469 1465 1.886 2133 2410 2.720 3.066 3.452 4.363 5492 6153 1.149 1.319 1.513 1.732 1.000 2.251 2.579 2.937 3.342 3.798 4.887 6.261 7.076 1,161 1.346 1.558 1.801 2.079 2.397 2759 3172 3.642 4.177 5.474 7138 8.137 1.173 1.373 1505 1873 2.183 2540 2962 3426 3.970 4.595 6.130 8137 9.358 1.184 1.400 1653 1948 2.292 2.693 3.159 3.700 4.328 5054 6.866 9.276 10.76 1.196 1428 1.702 2026 2.407 2.854 3380 3.996 4.717 5.560 7.690 10.58 12.38 1208 1.457 1.754 2.107 2527 3026 3517 4316 5142 6116 8.613 12.06 14.23 1.220 1.486 1800 2.191 2653 3.207 3.870 4.661 5.604 6.727 9646 13.74 16.37 Period 10 Period 11 Period 12 Period 13 Period 14 Period 15 Period 16 Period 17 Period 18 Period 19 Period 20 Period 21 Period 22 Period 23 Period 24 Period 25 1.232 1.516 1.860 2.279 2.786 3.400 4141 5034 6109 7.400 10.80 15.67 18.82 1.245 1546 1916 2.370 2.005 3.604 4.430 5437 6859 8140 12.10 17.00 21.64) 1.257 1.577 1974 2466 3072 3820 4741 5871 7.258 8.954 13.56 20.36 24 89 1270 1.608 2.033 2.563 3225 4049 5072 6.341 7.911 9.850 15.18 23.21 28.43 1.282 1641 2004 2666 3386 4.292 5427 6848 8623 10.83 17.00 26.45 32.02 SOM 1872A 230301 001 sana 1737 Print Done go 13 # $ 3 4 LL E GOD GOD 14 % P 95 T FS MacBook Air 44 17 +11 16 6 27 & * 7 8 9 0 F10 X imate Reference 5 of 5 (2 complete) X t the Periods Period 1 1% Period 2 2% 3% 0.990 0.980 0.971 1.970 1.942 1.913 4% Period 3 2.941 2.884 2.829 Period 4 Period 5 3.902 3.808 3.717 4.853 4.713 4580 Present Value of Ordinary Annuity of $1 5% 6% 7% 8% 9% 10% 12% 14% 15% 16% 18% 20% 0.962 0.952 0.943 0.935 | 0.926 0.917 0.909 0.893 0.877 0.870 0.862 0.847 0.833 1.886 1.859 1.833 1.808 1.783 1.759 1.736 1690 1.647 1.626 1.606 1.566 1.528 2.775 2.723 2673 2.624 2.577 2.531 2487 2.402 2.322 2.283 2.246 2174 2.106 3.630 3.546 3.465 3.387 3.312 3.240 3.170 3.037 2.914 2.855 2.798 2.690 2.589 4.452 4.329 4.212 4.100 3.993 3.890 3.791 3.605 3.433 3.352 3.274 3.127 2.991) Period 6 5.795 5.601 5417 5242 5.076 4.917 4.767 4.623 4.486 4.355 4.111 3.889 3.784 3.685 3498 3.326 Period 7 6.728 6.472 6.230 6.002 5.786 5.582 5.389 5.206 5.033 4.868 4.564 4.288 4.160 4.039 3812 3.605 Period & 7.652 7.325 7.020 6.733 6.463 6210 5.971 5747 5.535 5.335 4.968 4.639 4.487 4344 4078 3837 Period 9 8.566 8.162 7.786 7.435 7.108 6.802 6515 6247 5.995 5.750 5.328 4.946 4772 4.607 4.303 4031 Period 10 9.471 8983 8.530 8.111 7.722 7360 7.024 6710 6418 6.145 5660 5216 5.019 4.833 4494 4.192 Period 11 10 368 9.787 9.253 8.760 8.306 7.887 7.499 7.139 6805 6495 5938 5.453 5.234 5.029 4.656 4327 Period 12 11.255 10.575 9.954 9385 8863 8.354 7.943 7.536 7.161 6.814 6.194 5660 5421 5197 4.793 4.439 Period 13 12.134 11.348 10.635 9.906 9394 8.853 8.358 7904 7.487 7.103 6424 5842 5583 5342 4.910 4.533 Period 14 13.004 12.106 11.296 10.563 9899 9.295 8.745 8.244 7.786 7.367 6628 6.002 5.724 5.468 5.008 4811 Period 15 13 865 12.849 11.908 11 118 10.380 9.712 108 8.559 061 7606 6.811 6142 5847 5575 5.092 4675 Period 16 14.718 13.578 12.561 11.652 10.838 10.105 9447 8851 8313 7824 6974 6265 5964 5662 5162 4730 Period 17 15.562 14.292 13.166 12.166 11 274 10477 9.763 9.122 8.544 8.022 7.120 6.373 6047 5749 5.222 4775 Period 18 16.398 14.992 13.754 12.659 11.000 10.828 10.059 9372 8756 8201 7250 6.467 6.128 5818 5.273 4812 Period 19 17:226 15 878 14 324 13.134 12.085 11.158 10.336 9604 8350 385 7.366 6.550 6198 5877 5316 4.844 Period 20 18.046 16 351 14 877 13 590 12.462 11 470 10.504 9.818 $129 8554 7469 6623 6259 5.029 5.353 4.870 Period 21 18.857 17.011 15.415 14.029 12.82111.764 10.836 10.017 9232 Period 22 15.560 17.658 15.937 14.451 13.163 12 042 11.061 10 201 9442 772 2645 6743 6359 6011 5410 4.909 Period 23 20.456 18.292 16.444 14857 13489 12.303 11272 10.371 580 8883 7718 6792 6399 6044 5432 4.925 Period 24 21.243 18914 16.906 15.247 13 790 12 550 11.489 10.529 9757 8985 7.764 6835 6434 6073 5451 4937 Period 25 22.02319.529 17:413 15 22 14 094 12 783 11654 10675 9823 9077 7343 6873 6464 6097 5467 4948 643 7562 6687 6312 5373 53044891 thed or in th #3 80 13 $ 54 000 E R % 85 F5 Print Done MacBook Air 44 1 17 +11 FA 44 19 16 & * 6 7 8 9 0 T Y U 0 P F11 Splash Country is considering purchasing a water park in Atlanta, Georgia, for $1,800,000. The new facility will generate annual ne have no residual value. The company uses straight-line depreciation, and its stockholders demand an annual return of 12% on inve (Click the icon to view the Present Value of $1 table.) (Click the icon to view Future Value of $1 table.) Read the requirements (Click the icon to view Present Value of Ordinary Annuity of $1 table. (Click the icon to view Future Value of Ordinary Annuity of $1 table.) 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) Amount invested 1,800,000 Expected annual net cash inflow 457,000 Payback 4.0 years Next, determine the formula and calculate the accounting rate of return (ARR) (Round the percentage to the nearest tenth percent, XX%) Average annual operating income Average amount invested Calculate the net present value (NPV) (Enter any factor amounts to three decimal places, XXXXXX) ARR % Years 1-8 Present value of annuity Investment Net Cash Inflow Annuity PV Factor (12%) Present Value Nat present value of the investment The RR Onternal rate of retum) is between 18-20% Finally determine the formula and calculate the profitability indes. (Round your answer to two decimal places, XXXX) Choose from any list or enter any number in the input fields and then continue to the next question. esc @ 2 2 12 20 F3 000 000 14 Q W $ 54 #3 MacBook Air I 25 % 9 27 & * E R T Y 8 U hows of $457,000 for eight years. Engineers estimate that the facility will remain useful for eight yea have no residual value. The company uses straight-line depreciation, and its stockholders demand an annual rotum of 12% on investments of this nature (Click the icon to view the Present Value of $1 table.) (Click the icon to view Prosent Value of Ordinary Annuity of $1 table) (Click the icon to view Future Value of Ordinary Annuity of $1 table) (Click the icon to view Future Value of $1 table) Read the requirements Next, determine the formula and calculate the accounting rate of retum (ARR) (Round the percentage to the nearest tenth percent, XX%) Average annual operating income Average amount invested Calculate the net present value (NPV) (Enter any factor amounts to three decimal places, XXXXX) ARR Net Cash Annuity PV Factor Years Infow +12%) 1-8 Present value of annuity 0 Investment Not present value of the investment Present Value The RR jebemal rate of retum) is between 18-20% Finally, determine the formula and calculate the profitability index (Round your answer to two decimal places, XXXX) Present value o Requirement 2. Recommend whether the company should invest in this project Profily index Recommendation Splash Country should company's required rou invest in the project because the payback period is less than the operating ife, the NPV is positive the profitability index is greater than one, and the AR and RR are greater than the Choose from any it or enter any number in the input fields and then continue to the next question Splash Country is considering purchasing a water park in Atlanta, Georgia, for $1,800,000. The new facility will generate annual net cash inflows of $457,000 for eight years. Engineers estimate that the facility will remain useful for eight years an have no residual value. The company uses straight-line depreciation, and its stockholders demand an annual retum of 12% on investments of this nature. (Click the icon to view the Present Value of $1 table) (Click the icon to view Future Value of $1 table) (Click the icon to view Present Value of Ordinary Annuity of $1 table) (Click the loon to view Future Value of Ordinary Annuity of $1 table) Read the require Requirement 1. Compute the payback, the ARR, the NPV, the IRR, and the profitability index of this investment Fest, determine the formula and calculate payback. (Round your answer to one decimal place, XX) Amount invested 1,800,000 Expected annual net cash inflow 457,000 Payback 40 years Next, determine the formula and calculate the accounting rate of retum (ARR) (Round the percentage to the nearest tenth percent, XX) Average annual operating m Calculate the not present value (NPV) (Enter any factor amounts to three decimal places, XXXXX) ARR Years 1. Pad Net Cash Annuity Factor 12%) Present Value Tha Fraly me and case they sound your two del XXXX) Choose from any t or any number in the your fa and then continue to the next question hows of $457,000 for eight years. Engineers estimate that the facility will remain useful for eight yea have no residual value. The company uses straight-line depreciation, and its stockholders demand an annual rotum of 12% on investments of this nature (Click the icon to view the Present Value of $1 table.) (Click the icon to view Future Value of $1 table) Read the requirements (Click the loon to view Present Value of Ordinary Annuity of $1 table) (Click the loon to view Future Value of Ordinary Annuity of $1 table) Next, determine the formula and calculate the accounting rate of retum (ARR) (Round the percentage to the nearest tenth percent, XX%) Average annual operating income Average amount invested Calculate the net present value (NPV) (Enter any factor amounts to three decimal places, XX00) ARR Years 1-8 Present value of annuity 0 Investment Not present value of the investment Net Cash Annuity PV Factor Infow Present Value The RR nemal rate of retu) is between 18-20% Finally, determine the formuls and calculate the profitability index (Round your answer to two decimal places, XXXX) Present value o Requirement 2. Recommend whether the company should invest in this project Probably index Recommendation Splash County should company's required invest in the project because the payback period is less than the operating ife, the NPV is positive the profitability index is greater than one, and the AR and RR are greater than the of Choose from any 1st or enter any number in the input fields and then continue to the next