Splash World is considering purchasing a water park in Atlanta, Georgia, for $1,880,000. The new facility will generate annual net cash inflows of $480,000 for eight years. Engineers estimate that the new facilities 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.

The new facility will generate annual net cash inflows of $480,000 for eight years. Engineers estimate that the n Splash World is cons ering purchasing a water park in Atlanta, Georgia, for S1,880,000. ew faci 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 the Present value ofAnnuity of S1 table.) Requirements 1. Compute the payback, the ARR, the NPV, the IRR, and the profitability index of this investment. 2. Recommend whether the company should invest in this project 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 Amount invested Average amount invested Expected annual net cash inflow Present value of net cash emain useful for eig