Splash Planet is considering purchasing a water park in Atlanta, Georgia, for S1,820,000. The new facility will generate annual net cash inflows of $462,000 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 12% 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 $1 table.) (Click the icon to view Future Value of $1 table.) (Click the icon to view Future Value of Ordinary Annuity of $1 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, ..) - Payback years Next determine the formula and calculate the accounting rate of retum (ARR). (Round the percentage to the nearest tenth percent, X.X%.) ARR Calculate the net present value (NPV) (Enter any factor amounts to three decimal places, X.XxXx.) Net Cash Inflow Annuity PV Factor (F12%, n-8) Present Value Years 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, X.XX.) - Profitability index Requirement 2. Recommend whether the company should invest in this project. V the operating life, the NPV is the profitability index is Recommendation: Splash Planet company's required rate of return. invest in the project because the payback period is | one, and the ARR and IRR are the Present Value of $1 Present Value of Ordinary Annuity of $1 1% 2% | 3% 4% 5% | 6% | 7% | 8% | 9% 10% | 12%| 14% | 15% | 16% 18% 20% 1 0.990 0.980 0.971 0.9620.952 0.943 0.9350.926 0.9170.9090.8930.8770.8700 2 1.970|19421.913 1.886|1.859|1.833|1.808 | 1.783|1.759 1.736 .690 1.6471 26|16 3 2.941 2.884 2.829 2.775 2.723 2.673 2.6242.577 2.531 2.4872.40 4 3.902 3.808 3.717 3.630 3.546 3.465 3.387 3.312 3.240 3.1703.0372.9142.855 10.990 0.980 0.97110.962 0.9520.943 0.935 0.926 0.917 0.909 0.893 0.877 0.870 0.86210.847 0.833 2 0.98010.961|0.943|0.925|0.907|0890|0.8730857|0842|0826|0797|0.769 0.756|0.743|0718|0.694 3 0.9710.942 0.915 0.889 0.864 0.840 0.816 0.794 0.772 0.751 0.712 0.675 0.658 0.641 0.609 0.579 4 0.96110.924 0.8880.8550.823 0.792 0.763 0.735 0.70810.683 0.636 0.592 0.572 0.552 0.516 0.482 5 0.9510.9060.863 0.822 0.784 0.747 0.713 0.681 0.650 0.6210.567 0.519 0.497 0.476 0.437 0.402 6 0.942 0.888 0.837 0.790 0.746 0.705 0.666 0.630 0.596 0.564 |0.507 0.456 0.432 0.410 0.370 0.335 7 0.933|0.871|0.813|0.760|0.711|0.665|0.623|0.583|0.5470.513104520400 0.376|0.354|0.314|0.279 8 0.923 0.853 10.78910.731(0 677 0.627 10.58210.54010.50210467 |040410.35110.32710.30510.26610.233 9 0.914 0.83710.76610.703/0.645 0.59210.5440.500104601042410.361I0.308 10.284 0.26310.22510.194 10 0.905 0.820 0.744 0.676 0.614 0.5580.508 0463 0422 0.386 0.322 0.270 0.247 0.227 [0.19110.162 11 0.896 0.804 0.722 0.650 0.585 0.527 0475 0429 0.388 0.350 0.287 0.237 0.215 0.195 0.162 0.135 12 0.887 0.7880.701/0.625 0.557 0.497 0444 0.397 0.356 0.319 0.257 0.208 0.187 0.168 0.13710.112 13 0.879 0.773 0.681 0.601 0.530 0.469 0415 0.368 0.326 0.290 0.229 0.182 0.163 0.145 0.116 0.093 14 0.870 0.758 0.661 0.577 0.505 0.4420.388 0.340 0.299 0.263 0.205 0.160 0.1410.125 0.099 0.078 15 0.861 0.743 0.642 0.555 0.481 0.417 0.362 0.315 0.275 0 239 0.183 0.140 0.123 0.108 0.084 0.065 16 0.853 0.728 0.623 0.53410.45810.394 0.339 0.292 0252 021810.163 0.123 0.107 0.093 0.07110.054 17 0.844 0.7140.60510.51310.43610.371 0.317 0.270 0.231 0.19810.14610.108 0.093 0.080 0.06010.045 18 0.836 0.700 0.58710.49410.416 0.3500.296 0.250 0.21210.180 0.130 0.095 0.081 0.069 0.05110.038 19 0.828 0.686 0.570 0.475 0.396 0.331 0.277 0232 0.194 0.164 0.116 0.083 0.070 0.060 0.043 0.03 20 0.820 0.673 0.55410.456 0.377 0.312 0.258 0.215 0.17810.149 0.104 0.073 0.06110.051 0.03710.026 21 0.811 0.66010.53810.43910.359 0.294 0.24210.19910.164 0.13510.093 0.064 0.053 0.044 0.03110.022 22 0.803 0.6470.52210.42210.342 0.278 0.226 0.1840.15010.12310.083 0.056 0.046 0.03810.02610.018 23 0.795 0.6340.50710.40510.326 0.262/0.21110.170 0.138 0.112 0.074 0.049 0.040 0.03310.02210.015 24 0.788 0.622 0.492/0.39010.310 0.247 0.197 0.158 0.126 0.102 0066 0.043 0.035 0.0280.01910.013 25 0.780 0.6100,47810.375 0.29510.233 0.184 0.146 0.116 0.092 0.05910.038 0.030 0.0240.01610.010 26 0.77210.598 0.4640.36110.28110.22010.17210.13510.106 10.084 10.05310.03310.0260.02110.01410.009 27 0.764|0.586|0.450|0.347|0.268|0.207|0.161|0.125|0.098|0.0760.047|0.029 0.023|0.018|0.011 .007 28 07570.57410.437|0.33310.25510.19610.150|0. 11610.09010.069100420.026|0.02010.016 0.010|0.006 29 0.749 0.563 0.42410.321 0.243 0.185 0.141 0.107 0.082 0.063 0.037 0.022 0.017 0.0140.00810.005 30 0.742 0.5520.4120.308 0.231 0.174 0.131 0.09910.0750.0570.033 0.020 0.015 0.012l0.007 0.004 40 0.672 0.453 0.307 0.208 0.142 0.0970.067 0.046 0.032 0.0220.011 0.005 0.004 0.003 0.001 0.001 50 0.508|0.37210.22810.14110.087|0.054 10.03410.021 10.01310.009|0.003|0.001 0.001 0.001 1528 6 5.795 5.6015.4175.242 5.076 4.917 4.767 4.623 4.486 4.3554.1113.88 7 6.728 6.472 6.230 6.0025.786 5.582 5.389 5.206 5.033 4.868 8 7.652 7.325 7.020 6.733 6.4636.210 5.971 (5.747 5.535 160 487 12 11:10.bni MenfL3itsil 0.3er.m4a ''any.161fj.f:146.1e24 i )6 15.1gy4MrAA.A 13 12.134134810.6359.986 9.394 8.853 8.358 7.904 7.4877.1036.4245.8425.5835.3424.91 14 13.00412.10611.29610.563 9.899 9.295 8.745 8.244 7.786 7.3676.6286.0025.7245 15 13.86 849 11.938 11.118 10.38 97129.108|8.559 | 8.061 7.606|6.811|6 3475.57 16 14.: 7812.561 11.652 10.83 19.447 | 8.851 |8.313 7.8246. 26 17 15.56214.29213.16612.16611.27410477 9.763 9.122 8.544 18 16.3914.99213.75412.65911.69010.82810.059 9.372 8.756 8.20 19 17.22615.67814.32413.13412.08511.15810.336 9.604 8.9508.365 20 18.04616.35114.87713.59012.46211.47010.594 9.818 9.129 8.5147.4696.6236.2595 21 18.85717.01115.41514.02912.821 11.764 10.83610.017 9.292 8.6497.5626.6876.3125 22 19.66017.65815.93714.45113.16312.04211.06110.201 9.442 8.7727.64516.7436.3596.0115410 23 24 21.24318.91416.93615.24713.79912.5501146910.5299.707 8.985 25 22.029.523741315.62214.09412.78311.65410.675 9.823 26 22.79520.12117.87715.98314.37513.00311.82610.810 9.929 9.161 27 23.56020.70718.32716.33014.64313.2111198710.93510.0279.2377.94 28 24.31621.28118.76416.66314.89813.406 12.13711.05110.1169.307 29 30 2 .33.765|1 27 igg 321115 19.as 11.15 81 (i 1113010 nos!! 'na 44 r i8626. % 41[f 775 31 18.29216.44414.85713.48912.303 11.27210.3719.5808.8837.71 .4916.118 5.4804.9 19.18816.98415.14113.59112.278 11.15810.1989.37 0036.5666.1775.517 Print Done Print Done Reference Future Value of $1 Future Value of Ordinary Annuity of $1 enods 1% 2% | 3% | 4% 5% | 6% | 7% | 8% | 9% | 10% | 12% 14% | 15% 11.010 1.0201.030 1.040 1.050 1.060 1.0701.080 1.090 1.100 1.120 1.1401.150 2 1.020 1.040 1.061 1.082 1.103 1.124 1.145 1.166 1.188 1.210 1.254 1.300 1.323 3 1.030 1.061 1.093 1.125 1.158 1.191 1.225 1.260 1.295 1.331 1.405 1.482 1.521 4 |1.041 | 1.082|1.126|1.170|1216|1.262 | 1.311|1.360 | 1.412|1.4641.574|1.689 | 1.749 5 1.051 1.104 1.159 1.217 1.276 1.338 1.403 1.4691.539 1.6111.762 1.925 2.011 6 |1.062|1.126|1.194|1.265 | 1.340 | 1.419|1.501 | 1.587|1.677 | 1.772|1974121952313 7 |1.072|1.149 | 1.230 | 1.316|1.407 | 1.504|1.606|1.714|1.828 | 1.9492.211|2.502 2.660 8 1.083 1.172 1.267 1.369 1.477 1.594 1.718 1.851 1.993 2.144 2.476 2.853 3.059 9 1.094 1.195 1.305 1.423 1.551 1.689 1.838 1.999 2.172 2.358 2.773 3.252 3.518 10 1.105 1.219 1.344 1.480 1.629 1.7911.967 2.159 2.367 2.594 3.106 3.707 4.046 11 1.116 1.243 1.384 1.539 1.710 1.898 2.105 2.332 2.580 2853 3.479 4.226 4.652 12 1.127 1.268 1.426 1.601 1.796 2.012 2.252 2.518 2.813 3.138 3.896 4.8185.350 13 1.138 1.294 1.4691.665 1.886 2.133 2.410 2.720 3.066 3.452 4.363 5.492 6.153 14 1.149 1.319 1.513 1.732 1.980 2.261 2.579 2.937 3.342 3.798 4.887 6.261 7.076 15 1.161 1.346 1.558 1.801 2.079 2.397 2.759 3.172 3.642 4.1775.4747.138 8.137 16 1.1731.373 1.605 1.873 2.183 2.540 2.952 3.426 3.970 4.595 6.130 8.137 9.358 17 1.1841.400 1.653 1.948 2.292 2.693 3.159 3.700 4.328 5.0546.866 9.276 10.76 18 1.196 1.428 1.702 2.026 2.407 2.854 3.380 3.996 4.717 5.560 7.690 10.58 12.38 19 1.208 1.457 1.754 2.107 2.527 3.026 3.617 4.3165.142 6.1168.613 12.06 14.23 20 1220 1.486 1.806 2.191 2.653 3.207 3.870 4.661 5.604 6.727 9.646 13.74 16.37 21 1.232 1.516 1.860 2.279 2.786 3.400 4.141 5.034 6.109 7.400 10.80 15.67 18.82 22 1.2451.546|1.916|2.370 | 2.925|3.604|4.430|5.437|6.659 | 8.140|1210|17.86 | 21.64 23 1.257 1.577 1.974 2.465 3.072 3.820 4.741 5.871 7.258 8.954 13.55 20.36 24.89 24 1.270 1.608 2.033 2.563 3.225 4.049 5.072 6.341 7.911 9.850 15.18 23.21 28.63 25 1.282 1.641 2.094 2.666 3.386 4.2925.4276.848 8.623 10.83 17.00 26.46 32.92 26 1.295 1.673 2.157 2.772 3.556 4.549 5.807 7.396 9.399 11.92 19.04 30.17 37.86 27 1.308|1.707|2.221 2.8833.733|4.822|6214|7.988 | 10.25 | 13.1121.32 34.3943.54 28 1.321 1.741 2.288 2.999 3.920 5.112 6.649 8.627 11.17 14.42 23.88 39.20 50.07 29 1.335 1.776 2.357 3.119 4.116 5.4187.114 9.317 12.17 15.86 26.75 44.69 57.58 30 1.348 1.811 2.427 3.243 4.322 5.7437.612 10.06 13.27 17.45 29.96 50.95 66.21 40 1.489 2.208 3.262 4.801 7.040 10.29 14.97 21.72 31.41 45.26 93.05 188.9 267.9 692| 4.384 | 7.107| 11.47 | 18.42 | 29.46|46.90 | 74.36| 117.4 |289. 700.21 1,084 Peri ode 1% | 2% | 3% | 4% | 5% | 6% | 7% | 8% | 9% | 10% | 12% | 14% | 15% 11.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.0001.000 2 2.010 2.020 2.0302.0402.050 2.060 2.0702.080 2.090 2.100 2.120 2.140 2.150 3 13.030|3.060|3.091|3.122|3.153|3.184 | 3.215|3246|3.278 | 3.310 3.374|3440|3473 4 4.060 4.122 4.184 4.246 4.310 4.3754.440 4.506 4.573 4.641 4.779 4.921 4.993 5 5.101 5.2045.309 5.416 5.5265.6375.751 5.8675.985 6.105 6.3536.610 6.742 6 6.152 6.3086.468 6.633 6.8026.975 7.153 7.336 7.523 7.7168.115 8.536 8.754 7 7.214 7.434 7.662 7.898 8.142 8.3948.654 8.923 9.200 9.487 10.09 10.73 11.07 8 8.286 8.583 8.892 9.2149.549 9.897 10.260 10.64 11.03 11.44 12.30 13.23 13.73 9 9.369 9.755 10.16 10.58 11.03 11.49 11.98 12.49 13.02 13.58 14.78 16.09 16.79 10 10.46 10.95 11.46 12.01 12.58 13.18 13.82 14.49 15.19 15.94 17.5519.34 20.30 11 11.57 12.17 12.81 13.49 14.21 14.97 15.78 16.65 17.56 18.53 20.65 23.04 24.35 12 12.68 13.41 14.19 15.03 15.92 16.87 17.89 18.98 20.14 21.38 24.13 27.27 29.00 13 13.81 14.68 15.62 16.63 17.71 18.88 20.14 21.50 22.95 24.52 28.03 32.09 34.35 14 14.95 15.97 17.09 18.29 19.60 21.02 22.55 24.21 26.02 27.98 32.39 37.58 40.50 15 16.10 17.29 18.60 20.02 21.58 23.28 25.13 27.15 29.36 31.77 37.28 43.84 47.58 16 17.26 18.64 20.16 21.82 23.66 25.67 27.89 30.32 33.00 35.9542.75 50.98 55.72 17 18.43 20.01 21.76 23.70 25.84 28.21 30.84 33.75 36.97 40.54 48.88 59.12 65.08 18 19.61 21.41 23.41 25.65 28.13 30.91 34.00 37.45 41.30 45.60 155.75 68.39 75.84 19 20.81 22.84 25.12 27.67 30.54 33.76 37.3841.45 46.02 51.16 63.44 78.97 88.21 20 22.02 24.30 26.87 29.78 33.07 36.79 41.00 45.76 51.16 57.28 72.05 91.02 102.4 21 23.24 25.78 28.68 31.97 35.72 39.99 44.87 50.42 56.76 64.00 81.70 104.8 118.8 22 24.47 27.30 30.54 34.25 38.51 43.39 49.01 55.46 62.87 71.40 92.50 120.4 137.6 23 25.72 28.85 32.45 36.62 41.43 47.00 53.44 60.89 69.53 79.54 104.6 138.3 159.3 24 26.97 30.42 34.43 39.08 44.50150.82 58.18 66.76 76.79 88.50 118.2 158.7 184.2 25 28.24 32.03 36.46 41.65 47.73 54.86 63.25 73.11 84.70 98.35 1333 181.9 212.8 26 29.53 33.67 38.55 44.31 51.11 59.16 68.68 79.95 93.32 109.2 150.3 208.3 245.7 27 30.82 35.34 40.71 47.08 54.67 63.71 74.48 87.35 102.7 121.1169.4 238.5 283.6 28 32.13 37.05 42.93 49.97 58.40 68.53 80.70 95.34 113.0 134.2 190.7 272.9 327.1 29 33.45 38.79 45.22 52.97 62.32 73.6487.35 104.0 124.1 148.6 214.6 312.1 377.2 30 34.78 40.57 47.58 56.08 66.44 79.06 94.46 1133 136.3 164.5 241.3 356.8 434.7 40 48.89 60.40 75.40 95.03 120.8 154.8 199.6 259.1337.9 442.6 767.1 1,342 1,779 50 64.46 84.58 112.8 152.7 209.3 290.3406.5 573.8 815.11,1642,400 4,995 7,218 Print Done