Splash World is considering purchasing a water park in San Diego, California, for $1,950,000. The new facility will generate annual net cash inflows of $490,000 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 12% or more. Management uses a 14% hurdle rate on investments of this nature. (Click the icon to view the present value annuity table.) 3 (Click the icon to view the present value table.) (Click the icon to view the future value annuity table.) (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 years. Requirements 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. Print Print Done Done 4.713 4.452 Present Value of Annuity of $1 | Periods) 1% | 2% | 3% | 4% | 5% | 6% | 8% | 10% | 12% | 14% | 16% | 18% | 20% 0.990 | 0.980 | 0.971 | 0.962 10.952 | 0.943 | 0.926 0.909 | 0.893 | 0.877 | 0.862 | 0.847 10.833 1.970 1.942 1.913 1.886 1.859 1833 1.783 | 1.736 1.690 1.647 | 1.605 1.566 1.528 2.941 2.884 2.829 2.775 2.723 2.673 2.577 2.487 2.402 2.322 2.246 2.174 2.106 3.902 3.808 3.717 3.630 13.546 3.465 3.312 3.170 3.037 2.914 2.798 2.690 2.589 4.853 4.580 4.329 4.212 3.993 13.791 13.605 3.433 3.274 | 3.127 2.991 5.795 5.601 5.417 5.242 15.076 14.917 4.623 4.355 4.111 13.889 3.685 3.498 3.326 6.728 6.472 6.230 6.002 5.786 5.582 5.206 14.868 4.564 4.288 4.039 3.812 3.605 7.652 7.325 | 7.020 6.733 6.463 6.210 5.747 15.335 4.968 4.639 4.344 4.078 3.837 8.566 18.162 17.786 | 7.435 7.108 6.802 6.247 15.759 5.328 4.946 4.607 4.303 4.031 9471 8.983 8.530 8.111 7.722 7.360 6.710 6.145 5.650 5.216 4.833 4.494 4.192 10.368| 9.787 | 9.253 | 8.760 | 8.306 7.887 7.139 6.495 5.938 5.453 5.029 4.656 4.327 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 | 9.986 | 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 | 9.899 | 9.295 8.244 7.3671 6.628 6.002 5.468 4.611 13.865 | 12.849 | 11.938 | 11.118 | 10.380 | 9.712 8.559 7.606 6.811 6.142 5.575 5.092 4.675 18.046| 16.351114.877 13.590 | 12.462 1.470 | 9.818 | 8.514 17.469 6.623 5.929 5.353 4.870 122.023 | 19.523 | 17.413 | 15.622 | 14.094 | 12.783 | 10.675 | 9.077 | 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 6.177 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 234567890 H28468889 5.008 Future Value of Annuity of $1 Periods 4% 5% 1.000 2.050 1% 1.000 2.010 3.030 4.060 5.101 6.152 7.214 8.286 9.369 10.462 3% 1.000 2.030 3.091 4.184 5.309 1.000 2.040 3.122 4.246 5.416 8% 1.000 2.080 3.246 4.506 5.867 6% 1.000 2.060 3.184 4.375 5.637 6.975 8.394 9.897 11.491 13.181 10% 1.000 2.100 3.310 4.641 6.105 12% 1.000 2.120 3.374 4.779 6.353 18% 1.000 2.180 3.572 5.215 7.154 3.153 4.310 5.526 14% 1.000 2.140 3.440 4.921 6.610 8.536 10.730 13.233 16.085 19.337 20% 1.000 2.200 3.640 5.368 7.442 2% 1.000 2.020 3.060 4.122 5.204 6.308 7.434 8.583 9.755 10.950 12.169 13.412 14.680 15.974 17.293 coco v 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 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 16% 1.000 2.160 3.506 5.066 6.877 8.977 11.414 14.240 17.519 21.321 25.733 30.850 36.786 43.672 51.660 9.930 12.916 16.499 20.799 25.959 9.442 12.142 15.327 19.086 23.521 28.755 34.931 42.219 50.818 60.965 H co 11.567 12.683 13.809 14.947 16.097 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 32.150 39.581 48.497 59.196 72.035 22.019 28.243 34.785 48.886 24.297 32.030 40.568 60.402 26.870 36.459 47.575 75.401 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 73.106 113.283 259.057 57.275 98.347 164.494 442.593 72.052 91.025 133.334 181.871 241.333 356.787 767.091 | 1,342.025 115.380 146.628 249.214 342.603 530.312790.948 2,360.757 4,163.213 186.688 471.981 1,181.882 7,343.858 Present Value of $1 0.519 0.305 0.308 Periods) 1% | 2% | 3% | 4% | 5% | 6% | 18% | 10% | 12% | 14% | 16% | 18% | 20% 0.990 | 0.980 | 0.971 | 0.962 10.952 | 0.943 | 0.926 0.909 | 0.893 | 0.877 | 0.862 | 0.847 | 0.833 0.980 0.961 0.943 0.925 0.907 0.890 | 0.857 | 0.826 | 0.797 | 10.769 | 0.743 | 0.718 | 0.694 0.971 | 0.942 | 0.915 | 0.889 | 0.864 0.840 0.794 0.751 0.712 0.675 0.641 0.609 0.579 0.961 | 0.924 | 0.888 | 0.855 | 0.823 10.792 | 0.735 | 0.683 | 0.636 | 10.592 | 0.552 | 0.516 | 0.482 0.951 | 0.906 | 0.863 | 0.822 | 0.784 | 0.747 0.681 0.621 0.567 0.476 0.437 10.402 0.942 | 0.888 | 0.837 | 0.790 0.746 0.705 0.630 0.564 10.507 || 10.456 | 0.410 | 0.370 10.335 0.933 | 0.871 0.813 | 0.760 10.711 10.665 10.583 0.513 0.452 0.400 10.354 | 0.314 0.279 0.923 0.853 10.789 0.731 0.677 10.627 10.540 0.467 | 0.404 0.351 | 0.266 0.233 0.914 | 0.837 | 0.766 0.703 0.645 0.592 | 0.500 0.424 10.361 | 0.263 | 0.225 0.194 0.905 | 0.820 | 0.744 0.676 0.614 0.558 10.463 10.386 | 0.322 10.270 10.227 10.191 10.162 0.896 0.804 0.722 0.650 0.585 0.527 0.429 0.350 0.287 0.237 0.195 0.162 0.135 0.887 0.788 0.701 0.625 0.557 0.497 0.397 0.319 0.257 0.208 0.168 10.137 | 0.112 0.879 0.773 0.681 0.601 0.530 0.469 0.368 10.290 0.229 0.182 0.145 10.116 0.093 0.870 0.758 0.661 0.577 0.505 0.442 0.340 10.263 0.205 0.160 0.125 10.099 0.078 0.861 0.743 0.642 0.555 0.481 0.417 10.315 10.239 0.183 0.140 0.108 0.084 0.065 0.820 0.673 0.554 10.456 10.377 | 0.312 | 0.215 | 0.149 | 0.104 | 0.073 | 0.05110.037 | 0.026 0.780 0.610 0.478 0.375 0.295 0.233 0.146 10.059 0.038 0.024 0.010 | 0742 lo.552 lo412 lo.308 10231 lo174 lo099 lo057 lo033 lo020 lo012 lo007 lo004 10.672 | 0.453 | 0.307 | 0.208 | 0.142 | 0.097 | 0.046 | 0.022 | 0.011 | 0.005 | 0.003 | 0.001 | 0.001 45 67890HQB4b9%99 Future Value of $1 Periods 8% | 6% 1.060 1.124 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 4% 1.040 1.082 1.125 1.170 1.217 5% 1.050 1.103 1.158 1.216 1.276 10% 1.100 1.210 1.331 1.464 1.611 12% 1.120 1.254 1.405 1.574 1.762 16% 1.160 1.346 1.561 1.811 2.100 1.191 1.262 1.338 14% 1.140 1.300 1.482 1.689 1.925 2.195 2.502 2.853 3.252 3.707 1.080 1.166 1.260 1.360 1.469 1.587 1.714 1.851 1.999 2.159 8 o ovo own 18% 1.180 1.392 1.643 1.939 2.288 2.700 3.185 3.759 4.435 5.234 20% 1.200 1.440 1.728 2.074 2.488 2.986 3.583 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 1.772 1.949 2.144 2.358 2.594 1.974 2.211 2.476 2.773 3.106 2.436 2.826 3.278 3.803 4.411 4.300 5.160 6.192 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 2.191 2.666 3.243 4.801 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 3.797 4.177 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 1.220 1.282 1.348 1.489 1.486 1.641 1.811 2.208 1.806 2.094 2.427 3.262 2.653 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 13.743 26.462 50.950 188.884 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 8