Splash World is considering purchasing a water park in Atlanta, Georgia, for $1,870,000. 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 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 $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, 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 Splash World is considering purchasing a water park in Atlanta, Georgia, for $1,870,000. The new facility will generate annual net cash inflows of $46 years. Engineers estimate that the facility will remain useful for eight years and have no residual value. The company uses straight-line depreciation, 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 $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, X.X.) Payback years punting rate of return (ARR). (Round the percentage to the nearest tenth percent, X.X%.) Amount invested Average amount invested Expected annual net cash inflow Present value of net cash inflows ARR Calculate the net present value (NPV). (Enter any factor amounts to three decimal places, XXXX) Net Cash Inflow Annuity PV Factor (-10%, n=8) Present Value Years Splash World is considering purchasing a water park in Atlanta, Georgia, for $1,870,000. 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 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 $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 Calculate the net present value (NPV). (Enter any factor amounts to three decimal places, X.xxx.) Net Cash Annuity PV Factor Present Inflow (i10%, n=8) Value 1.8 Present value of annuity Years Investment Net present value of the investment The IRR (internal rate of return) is between Finally, determine the formula and calculate dex. (Round your answer to two decimal places, XXX) = Profitability index 12-14% 14-16% 16-18% 18-20% www Barmant Demon other than Choose from any list or enter any number .ds and then continue to the next question Splash World is considering purchasing a water park in Atlanta, Georgia, for $1,870,000. 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 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 $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 1.8 O Present value of annuity Investment Not 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 Recommendation: Splash World invest in the project because the payback period is the operating life, the NPV is profitability index is one, and the ARR and IRR are the company's required rate of return the Splash World is considering purchasing a waterpark in Atlanta, Georgia, for $1,870,000. 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 10% on Investments of this nature (Click the icon to view the Present Value of $1 table.) Click the loon 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 1.8 O Present value of annuity 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 Recommendation Splash World invest in the project because the payback period is the operating life, the NPV is profitability index is and IRR are the company's required rate of return. should Choose from any list or enterar soud not put fields and then continue to the next question Splash World is considering purchasing a water park in Atlanta, Georgia, for $1,870,000. 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 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 $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 1-8 Present value of annuity 0 Investment Not present value of the investment The IRR (internal rate of retur) 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 operating ife, the NPV is Recommendation: Splash World profitability index is invest in the project because the payback period is one, and the ARR and IRR are the company's Choose from any list or enter any number in the input fields and then continue to the next greater than less than Splash World is considering purchasing a waterpark in Atlanta, Georgia, for $1.870,000. 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 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 $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 1.8 0 Present value of annuity 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 Recommendation: Splash World invest in the project because the payback period is the operating life, the NPV is profitability Index is one, and the ARR and IRR are the company's required rate of retur the Choose from any list or enter any number in the input fields and then continue to the next question negative positive Splash World is considering purchasing a water park in Atlanta, Georgia, for $1,870,000. 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 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 $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 1.8 Present value of annuity 0 Investment Not present value of the investment The IRR (internal rate of retum) is between Finally, determine the formule 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 Recommendation: Splash World invest in the project because the payback period is the operating ie, the NPV is profitability index is one, and the ARR and IRR are the company's required rate of return Choose from any it er in the input fields and then continue to the next question greater than less than Splash World is considering purchasing a water park in Atlanta, Georgia, for $1,870,000. 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 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 $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 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) ohrability Index Requirement 2. Recommend whether the company should invest in this project Recommendation: Splash World profitability index is the invest in the project because the payback period is the operating to the NPV is one, and the ARR and IRR are the company's required rate of retum Choose from any list or enter any number in the input dan greater than next question less than Reference Reference : 1. 1541 Q% WEET 6473 ewrowe D 2.500 214 905352531215 BISNIS EREBBE SEEDS Reference Ordinary Arity of WA 128 570033 12111110 73 MM 70 LEIRELESS 5995 BLES Reference Reference 11 118 10 2712 40 06 10. | 81 || | | 10 HP 9 17895997 94 451 1983 242 11 1 2016442 077 | || | | 13 1 1 16 17 18 |88771 | 48944 | 20 16 47 18 19 | || ao | 10 0 0 | | TW | 32023 16.49 | 17 13 | 162 1404 120 14 16 10 | 19 | TWM | | FATE | Fa sh; | 33 36 36 16 12 18 2014 ) 2014 10 9 .00 ART 11 2011 10) 1991 1114 11 191999 25,80022-3081960017202153a1376124091120810274942) 21 348 .16 91 11 18 11 11 S8 | JO 13.10831.4242573021482182515782118011223150820915 || 10 13 14 113 | 113 15 | 10 426 | : | | Print Done Done