Splash World is considering purchasing a water park in Charleston, South Carolina, for $2,100,000. The new facility will generate annual net cash inflows of $535,000 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. Its owners want payback in less than five years and an ARR of 10% or more. Management uses a 12% hurdle rate on investments of this nature. 5 (Click the icon to view the present value annuity table.) (Click the icon to view the present value table.) (Click the icon to view the future value annuity table.) 3 (Click the icon to view the future value table.) Read the requirements. Requirement 1. Compute the payback period, the ARR, the NPV, and the approximate IRR of this investment. (If you use the tables to compute the IRR, answer with the closest interest rate shown in the tables.) (Round the payback period to one decimal place.) The payback period is D years. Future Value of $1 Periods 4% 6% 1 1% 1.010 1.020 1.030 1.041 1.051 2% 1.020 1.040 1.061 1.082 1.104 3% 1.030 1.061 1.093 1.126 1.159 1.040 1.082 1.125 1.170 1.217 5% 1.050 1.103 1.158 1.216 1.060 1.124 1.191 1.262 1.338 8% 1.080 1.166 1.260 1.360 1.469 10% 1.100 1.210 1.331 1.464 1.611 12% 1.120 1.254 1.405 1.574 1.762 14% 1.140 1.300 1.482 1.689 1.925 16% 1.160 1.346 1.561 1.811 2.100 18% 1.180 1.392 1.643 1.939 2.288 1.276 20% 1.200 1.440 1.728 2.074 2.488 2.986 3.583 4.300 5.160 6.192 1.062 1.072 1.083 1.094 1.105 1.126 1.149 1.172 1.195 1.219 1.194 1.230 1.267 1.305 1.344 1.265 1.316 1.369 1.423 1.480 1.340 1.407 1.477 1.551 1.629 1.419 1.504 1.594 1.689 1.791 1.587 1.714 1.851 1.999 2.159 1.772 1.949 2.144 2.358 2.594 1.974 2.211 2.476 2.773 3.106 2.195 2.502 2.853 3.252 3.707 2.436 2.826 3.278 3.803 4.411 2.700 3.185 3.759 4.435 5.234 1.116 1.127 1.138 1.149 1.161 1.243 1.268 1.294 1.319 1.346 1.384 1.426 1.469 1.513 1.558 1.539 1.601 1.665 1.732 1.801 1.710 1.796 1.886 1.980 2.079 1.898 2.012 2.133 2.261 2.397 2.332 2.518 2.720 2.937 3.172 2.853 3.138 3.452 3.479 3.896 4.363 4.887 5.474 4.226 4.818 5.492 6.261 7.138 5.117 5.936 6.886 7.988 9.266 6.176 7.288 8.599 10.147 11.974 7.430 8.916 10.699 12.839 15.407 3.797 4.177 13.743 26.462 1.220 1.282 1.348 1.489 1.486 1.641 1.811 2.208 1.806 2.094 2.427 3.262 2.191 2.666 3.243 4.801 2.653 3.386 4.322 7.040 3.207 4.292 5.743 10.286 4.661 6.848 10.063 21.725 6.727 10.835 17.449 45.259 9.646 17.000 29.960 93.051 19.461 40.874 85.850 378.721 27.393 62.669 143.371 750.378 38.338 95.396 237.376 1,469.772 50.950 188.884 Periods 1% 10.990 0.980 0.971 0.961 0.951 16% 0.862 0.743 0.641 0.552 0.476 18% 0.847 0.718 0.609 0.516 0.437 0.942 0.933 0.923 0.914 0.905 2% 0.980 0.961 0.942 0.924 0.906 0.888 0.871 0.853 0.837 0.820 0.804 0.788 0.773 0.758 0.743 0.673 0.610 0.552 0.453 3% 0.971 0.943 0.915 0.888 0.863 0.837 0.813 0.789 0.766 0.744 0.722 0.701 0.681 0.661 0.642 0.554 0.478 0.412 0.307 4% 0.962 0.925 0.889 0.855 0.822 0.790 0.760 0.731 0.703 0.676 0.650 0.625 0.601 0.577 0.555 0.456 0.375 0.308 0.208 Present Value of $1 5% 6% 8% 10% 0.952 0.943 0.926 0.909 | 0.907 0.890 0.857 0.826 0.864 0.840 0.794 0.751 0.823 0.792 0.735 0.683 0.784 0.747 0.681 0.621 0.746 0.705 0.630 0.564 0.711 0.665 0.583 0.513 0.677 0.627 0.540 0.467 0.645 0.592 0.500 0.424 0.614 0.558 0.463 0.386 0.585 0.527 0.429 0.350 0.557 0.497 0.397 0.319 0.530 0.469 0.368 0.290 0.505 0.442 0.340 0.263 0.481 0.417 0.315 0.239 0.377 0.312 0.215 0.149 0.295 0.233 0.146 0.092 0.231 0.174 0.099 0.057 0.142 0.097 0.046 0.022 12% 14% 0.893 0.877 0.797 0.769 0.712 0.675 0.636 0.592 0.567 0.519 0.507 0.456 0.452 0.400 0.404 0.351 0.361 0.308 0.322 0.270 0.287 0.237 0.208 0.229 0.182 0.205 0.160 0.183 0.140 0.104 0.073 0.059 0.038 0.033 0.020 0.0110.005 0.370 0.314 0.266 0.225 0.191 20% 0.833 0.694 0.579 0.482 0.402 0.335 0.279 0.233 0.194 0.162 0.135 0.112 0.093 0.078 0.065 0.026 0.010 0.004 0.001 0.257 0.410 0.354 0.305 0.263 0.227 0.195 0.168 0.145 0.125 0.108 0.051 0.024 0.012 0.003 0.896 0.887 0.879 0.870 0.861 0.820 0.780 0.742 0.672 0.162 0.137 0.116 0.099 0.084 0.037 0.016 0.007 0.001 Future Value of Annuity of $1 Periods 2% 18% 1% 1.000 2.010 3.030 4.060 5.101 1.000 2.020 3.060 4.122 5.204 3% 1.000 2.030 3.091 4.184 5.309 4% 1.000 2.040 3.122 4.246 5.416 5% 1.000 2.050 3.153 4.310 5.526 6% 1.000 2.060 3.184 4.375 5.637 8% 1.000 2.080 3.246 4.506 5.867 10% 1.000 2.100 3.310 4.641 6.105 12% 1.000 2.120 3.374 4.779 6.353 14% 1.000 2.140 3.440 4.921 6.610 16% 1.000 2.160 3.506 5.066 6.877 1.000 2.180 3.572 20% 1.000 2.200 3.640 5.368 7.442 5.215 7.154 oco voor own 6.152 7.214 8.286 9.369 10.462 6.308 7.434 8.583 9.755 10.950 6.468 7.662 8.892 10.159 11.464 6.633 7.898 9.214 10.583 12.006 6.802 8.142 9.549 11.027 12.578 6.975 8.394 9.897 11.491 13.181 7.336 8.923 10.637 12.488 14.487 7.716 9.487 11.436 13.579 15.937 8.115 10.089 12.300 14.776 17.549 8.536 10.730 13.233 16.085 19.337 8.977 11.414 14.240 17.519 21.321 9.442 12.142 15.327 19.086 23.521 9.930 12.916 16.499 20.799 25.959 11.567 12.683 13.809 14.947 16.097 22.019 28.243 34.785 48.886 12.169 13.412 14.680 15.974 17.293 12.808 14.192 15.618 17.086 18.599 13.486 15.026 16.627 18.292 20.024 14.207 15.917 17.713 19.599 21.579 14.972 16.870 18.882 21.015 23.276 16.645 18.977 21.495 24.215 27.152 18.531 21.384 24.523 27.975 31.772 20.655 24.133 28.029 32.393 37.280 23.045 27.271 32.089 37.581 43.842 25.733 30.850 36.786 43.672 51.660 28.755 34.931 42.219 50.818 60.965 32.150 39.581 48.497 59.196 72.035 24.297 32.030 40.568 60.402 26.870 36.459 47.575 29.778 41.646 56.085 95.026 33.066 47.727 66.439 120.800 36.786 54.865 79.058 154.762 45.762 73.106 113.283 57.275 72.052 98.347 133.334 164.494 241.333 442.593767.091 91.025 181.871 356.787 1,342.025 115.380 249.214 530.312 2,360.757 146.628 342.603 790.948 4,163.213 186.688 471.981 1,181.882 7,343.858 75.401 2.775 3.808 4.917 5.335 Present Value of Annuity of $1 [Periods] % 2% 3% 4% 5% | 6% 8% 10%] 12%] 14% 116%] 18% | 20%] 1 10.990 10.980 | 0.97110.962 10.952 10.943 10.926 10.909 10.893 | 0.877 10.862 10.847 10.833 1.970 | 1.942 1.913 1.886 | 1.859 | 1.833 1.783 1.736 1.690 1.647 1.605 1.566 1.528 2.941 2.884 2.829 2.723 2.673 2.577 2.487 2.402 2.322 2.246 2.174 2.106 3.902 3.717 3.630 3.546 3.465 3.312 3.170 3.037 2.914 2.798 2.690 12.589 4.853 4.713 4.580 4.452 4.329 4.212 3.993 3.791 3.605 3.433 3.274 3.127 2.991 5.795 5.601 5.417 5.242 5.076 4.623 4.355 4.111 3.889 3.685 3.498 3.326 6.728 6.472 6.230 6.002 5.786 5.582 5.206 4.868 4.564 4.288 4.039 3.812 3.605 7.652 7.325 7.020 6.733 6.463 6.210 5.747 4.968 4.639 4.344 4.078 3.837 8.566 | 8.162 | 7.786 7.435 7.108 6.802 6.247 15.759 5.328 | 4.946 14.607 | 4.303 4.031 9.471 8.983 18.530 7.722 7.360 6.710 6.145 5.650 5.216 4.833 4.494 4.192 10.368 19.787 19.253 8.760 8.306 7.887 7.139 6.495 5.938 5.453 5.029 4.656 14.327 11.255 | 10.575] 9.954 9.385 8.863 8.384 7.536 6.814 6.194 5.660 5.197 4.793 4.439 12.134 | 11.348 | 10.635 19.986 | 9.394 8.853 7.904 7.103 6.424 5.842 5.342 4.910 4.533 13.004 | 12.106 | 11.296 | 10.563 9.295 8.244 7.367 6.628 6.002 5.468 5.008 4.611 13.865 | 12.849 | 11.938 | 11.118 | 10.380 | 9.712 | 8.559 17.606 | 6.811 6.142 5.575 4.675 18.046 | 16.351114.877113.590 | 12.462 | 11.470 19.818 18.514 | 7.469 6.623 5.929 5.353 4.870 22.023 | 19.523 | 17.413 | 15.622 | 14.094 19.077 7.843 6.873 6.097 5.467 4.948 25.808 | 22.396 | 19.600 17.292 | 15.372| 13.765 | 11.258 | 9.427 8.055 7.003 16.177 5.517 4.979 | 32.835 | 27.355 | 23.115| 19.793 | 17.159 | 15.046 | 11.925 | 9.779 | 8.244 | 7.105 | 6.233 | 5.548 | 4.997 5 67890HQ846 8.111 9.899 5.092 1. Compute the payback period, the ARR, the NPV, and the approximate IRR of this investment. (If you use the tables to compute the IRR, answer with the closest interest rate shown in the tables.) 2. Recommend whether the company should invest in this project