Answered step by step
Verified Expert Solution
Link Copied!

Question

00
1 Approved Answer

Third Party Resource | LCS Learnit X P Do Homework - ACC-260 Topic 6 X + X C mathxl.com/Student/PlayerHomework.aspx?homeworkld=611719742&questionld=3&flushed=false&cld=6727461&back=DoAssignments.aspx?view=homework Apps G Gmail W Prodigy Game

image text in transcribedimage text in transcribedimage text in transcribed
Third Party Resource | LCS Learnit X P Do Homework - ACC-260 Topic 6 X + X C mathxl.com/Student/PlayerHomework.aspx?homeworkld=611719742&questionld=3&flushed=false&cld=6727461&back=DoAssignments.aspx?view=homework Apps G Gmail W Prodigy Game Freckle Student Das.. W MindPlay Screener P Reading Eggs + Tests - Edmentum Seesaw _ Classes ) Prodigy Game X XtraMath - Student. ACC-260-0500 Cheyenne Mason & | 11/04/21 4:32 PM = Homework: ACC-260 Topic 6 Assignment Question 5, P26-30A (si... HW Score: 84.62%, 84.62 of 100 points Part 3 of 6 Points: 24.62 of 40 Save Splash World is considering purchasing a water park in Atlanta, Georgia, for $1,050,000. The new facility will generate annual net cash inflows of $481,000 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. X.X.) Amount invested Expected annual net cash inflow Payback 1,950,000 481.000 4.1 years Next, determine the formula and calculate the accounting rate of return (ARR). (Round the percentage to the nearest tenth percent, X.X%.) Average annual operating income Average amount invested ARR 237.250 975.000 24.3 9% Calculate the net present value (NPV). (Enter any factor amounts to three decimal places, XXXX.) Net Cash Annuity PV Factor Present Years Inflow (i=10%, n=8) Value 1 - 8 Present value of annuity 0 Investment Net present value of the investment Help me solve this Demodocs example Get more help - Clear all Check answer O W 9 4:32 PM 11/4/2021X Third Party Resource | LCS Learnit X P Do Homework - ACC-260 Topic 6 X + C mathxl.com/Student/PlayerHomework.aspx?homeworkld=611719742&questionld=3&flushed=false&cld=6727461&back=DoAssignments.aspx?view=homework Apps G Gmail W Prodigy Game Freckle Student Das.. W MindPlay Screener P Reading Eggs + Tests - Edmentum Seesaw _ Classes ) Prodigy Game X XtraMath - Student. Cheyenne Mason & | 11/04/21 4:32 PM ACC-260-0500 Question 5, P26-30A (si... HW Score: 84.62%, 84.62 of 100 points Save = Homework: ACC-260 Topic 6 Assignment Part 3 of 6 Points: 24.62 of 40 Splash World is considering purchasing a water park in Atlanta, Georgia, for $1,050,000. The new facility will generate annual net cash inflows of $481,000 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.) - Reference Reference Future Value of $1 Present Value of $1 36 5% 9% 10% 126 1456 15% 18% 18% 20%% Periods 1% 2% 3% 45% 35% 0 70 7% 8%% 95% 10% 12%% 14% 15% Periods 25% 35% 4% 75% 8% Period 1.010 1.020 1.030 | 1.040 1 050 1.060 1.070 1.080 1.090 1.100 1.120 1.140 1.150 Period 1 0.990 0.980 0.971 0.962 0.952 0.943 |0.935 0.926 0.917 0.909 0.893 0.877 0.870 0.862 0.847 0.833 1.124 1.145 1.166 1.188 1.210 1.254 1.300 Period 2 0.980 0.981 0.943 0.925 |0.907 0.890 0.873 0.857 0.842 0.826 0.797 0.769 0.756 0.743 0.718 0.694 Period 2 1.020 1.040 1.061 1.082 1.125 1 158 1.191 1.225 1.260 1.295 1.331 1405 1 482 1 571 Period 3 0.971 0.942 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 Period 3 1.030 1 061 1.093 0.683 0.636 0.592 0.572 0.552 0.516 0.482 Period 1.041 1.082 1.126 1.170 1.216 1.262 1.311 1.360 412 1.464 1.574 1.689 1740 Period 4 0.961 0.924 |0.888 0.855 0.823 0.792 0.763 0.735 0.708 1.104 1.159 1 217 1 276 1.338 1.403 1469 .539 1.611 1.762 1.925 2.011 Period 5 0.951 0.9060 0.822 0.784 0.747 0.713 0.681 0.650 0.621 0.567 0.519 0.497 0.476 0.437 0.402 Period 5 1.051 0.564 0.456 0.432 0.410 0.370 0.335 Griod 1.062 1.126 1.194 1.265 1.340 1.419 1.501 1.587 1.677 1.772 1.974 2 195 2.313 Period 6 0.942 0.888 0.837 0.790 0.746 0.705 0.666 0.630 0.596 0.507 Period 1.072 1.149 1.316 1.504 1.606 1.714 1.828 1.949 2 211 2 502 2.660 Period 7 0.933 |0.871 0.813 0.760 0.711 0.665 0.623 0.583 10.547 0.513 0.452 0.400 0.376 0.354 0.314 0.279 0.923 0.853 0.789 0.731 0.677 0.627 0.582 0.540 0.502 0.467 0.404 0.351 0.327 0.305 0.256 0.233 Period 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 Period 8 1.195 1 423 1.551 1.689 1.838 1.999 2.172 2.358 3.252 3.518 Period 9 0.914 0.837 0.766 0.703 0.645 0.592 0.544 0.500 0.460 0.424 0.361 0.308 0.284 0.263 0.225 0.194 Period 9 1.094 1.305 0.270 0.227 0.191 0.162 Period 10 1.105 1.219 1.344 1.480 1.629 1.791 1.967 2.159 2.367 2.594 3.106 3.707 4.046 Period 10 0 0.905 0.820 0.744 4 0.676 0.614 0.558 0.508 0.463 0.422 0.386 0.322 0.247 Period 11 1.116 .243 1.384 1.539 1 710 1.898 | 2.105 2.332 2.580 2.853 3.479 4.226 4.652 Period 11 |0.896 0.804 0.722 0.650 0.585 0.527 0.475 0.429 0.38 8 0.350 0.287 0.237 0.215 0.195 0.162 0.135 4 818 5.350 Period 12 2 0.887 0.788 0.701 0.625 |0.557 0.497 0.444 0.397 0.356 0.319 0.257 0.208 0.187 0.168 0.137 0.112 Period 12 .127 1.268 1.426 1.601 2.012 2.252 2518 2.813 3.138 3.896 1.138 1.294 0.681 0.601 1.469 1.665 2.133 2.410 3.452 4.363 5.492 6.153 Period 13 0.879 0.530 0.469 0.415 0.368 0.326 0.290 0.229 0.182 0.163 0.145 0.116 0.093 Period 13 1.149 1.732 |2.261 2 937 3.798 4.887 6.261 7.076 Period 14 0.870 0.758 0.661 0.577 0.505 0.442 0.388 0.340 0.299 0.263 0.205 0.160 0.141 0.125 0.099 0.078 Period 14 1.319 1.513 1.346 1.801 3.172 3.642 4.177 5.474 7 138 8.137 Period 15 0.861 0.743 0.642 0.555 0.481 0.417 0.315 0.275 0.239 0.183 0.140 0.123 0.108 0.084 0.065 Period 15 1.16 1.558 2 079 2.397 0.362 1.373 Period 16 0.853 0.728 1.873 3.426 3.970 4.595 6.130 8.137 9.35 0.623 0.534 0.458 0.394 0.339 0.292 0.252 0 218 0.163 0.123 0.107 0.093 0.071 |0.054 Period 16 1.173 1.605 2.183 2.540 2.952 5.054 6.866 9.276 10.76 Period 17 0.844 0.714 0.605 0.513 0.436 0.371 0.317 0.270 0.231 0.198 0.146 0.108 0.093 0.080 0.050 0.045 Period 17 1.184 1.400 1.653 1.948 2.693 3.159 3.700 0.250 0.212 0.180 0.130 0.095 0.081 0.069 0.051 0.038 Period 18 1.196 1.428 2.026 |2.854 3.380 3.996 5.560 7.690 10.58 12 38 Period 18 0.836 0.700 0.587 0.494 0.416 | 0.350 0.296 0.031 Period 10 1.208 1457 2.107 2 527 3.026 3.617 4.316 5.142 6.116 8.613 12.06 14.23 Period 19 0.828 0.686 0.570 0 0.475 0.396 0.331 0.277 0.232 0.194 0.164 0.116 0.083 0.070 0.060 0.043 0.178 0.149 0.104 0.073 0.061 0.051 0.037 0.026 Period 20 1.220 1496 1.805 2.191 2 653 3.207 3.870 4.661 5.604 6.727 9.646 13.74 16 37 Period 20 0.820 0 0.673 0.554 0.456 | 0.377 0.312 0.258 0.215 5.034 6.109 7.400 10.80 15.67 18 82 Period 21 0.811 0.660 0.538 0.439 0.359 0 294 0.242 0.199 0.164 0.135 0.093 0.064 0.053 0.044 0.031 0.022 Period 21 1.232 1.516 1.860 | 2 279 2 786 3.400 4.141 er Period 22 0.803 0.647 0.522 0.422 0.342 0.278 0.226 0.184 0.150 0.123 0.083 0.056 60.046 0.038 0.026 0.018 Period 22 1.245 1.546 1.916 2 370 2 925 3.604 4.430 5.437 6.659 8.140 12.10 17.86 21.64 4:32 PM O W D 9 11/4/2021X Third Party Resource | LCS Learnit X P Do Homework - ACC-260 Topic 6 X + C mathxl.com/Student/PlayerHomework.aspx?homeworkld=6117197428questionld=3&flushed=false&cld=6727461&back=DoAssignments.aspx?view=homework Apps G Gmail W Prodigy Game Freckle Student Das.. W MindPlay Screener P Reading Eggs + Tests - Edmentum Seesaw _ Classes ) Prodigy Game X XtraMath - Student. Cheyenne Mason & | 11/04/21 4:33 PM ACC-260-0500 Question 5, P26-30A (si... HW Score: 84.62%, 84.62 of 100 points = Homework: ACC-260 Topic 6 Assignment Save Part 3 of 6 Points: 24.62 of 40 Splash World is considering purchasing a water park in Atlanta, Georgia, for $1,050,000. The new facility will generate annual net cash inflows of $481,000 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. X Reference - Reference Future Value of Ordinary Annuity of $1 Periods 15% 2% 3% 5% 6% 7% 36 1096 12% 149% 15% Present Value of Ordinary Annuity of $1 Period 1 1.000 1.000 1.000 1.000 1.000 1.000 | 1.000 1.000 1.000 | 1.000 |1.000 1.000 1.000 Period 2 2.010 2.020 2.030 2.040 2.050 2.060 2.070 2.080 2.090 2.100 2.120 2.140 2.150 Periods 1% 2% 3% 5% 6% 7% 85% 9% 10%% 125% 14% 15% 186 18% 20% Period 3 3.030 3.060 3.091 3.122 3.153 3.184 3.215 3.246 3.278 3.310 3.374 3.440 3.473 Period 1 0.990 0.980 0.971 0.962 0.952 0.943 0.935 |0.926 |0.917 0.909 0.893 0.877 0.870 |0.862 0.847 0.833 Period 4 4 060 4.184 4.246 4.310 4.375 : 440 4.506 4.641 4.921 4.993 Period 2 1.970 1.942 1.913 1.859 1.833 1.808 1.759 1.690 1.647 1.626 1.605 1.566 1.528 Period 5 5.101 5.204 5.309 5.416 5.526 5.637 5.751 5.867 5.985 | 6.105 6.353 6.610 6.742 Period 2.941 2.884 2.829 2.775 2.723 2.673 2.624 2.577 2.531 2.487 2.402 2.322 2.283 2.246 2.174 2.106 2.589 Period 6 6.152 6.308 6.468 6.833 6.802 6.975 7.153 7.336 7.523 7.716 8 115 8.536 8.754 Period 4 3.902 3.808 3717 3.630 3.546 3.465 3.312 3.240 3.170 3.037 2.914 2.855 2.690 7 214 7.898 | 8.142 8.394 8.654 8.923 9.200 9.487 10.09 10.73 11.07 Period 4 853 4.713 4 452 4 320 4.212 3.993 3.890 | 3.791 3.605 3.433 3.352 3.274 3.127 2.901 Period 7 7.434 7.662 Period 8 8.28 8.583 8.892 9.214 9.549 9.897 10.260 10.64 11.03 11.44 12.30 13.23 |13.73 Period 5.795 5.601 5.417 5.242 5.076 4.917 4.767 4.486 4.355 4.111 3.889 3.784 3.685 3.498 3.326 Period 9 9.369 9.755 0.16 10.58 11.03 11.49 11.98 12.49 13.02 13.58 14.78 16.09 16.79 Period 7 6.728 6.472 6.230 6.002 5.786 5.582 5.389 5.206 5.033 4.868 4.564 4.288 4.160 4.039 3.812 3.605 Period 10 10.46 10.95 11.46 12.01 12.58 13.18 13.82 14.49 15.19 | 15.94 17.55 19.34 20.30 Period 8 7.652 7.325 7.020 6.733 6.463 6.210 5.971 5.535 5.335 4.968 4.639 4.487 4.344 4.078 3.837 5.995 4.772 4.031 Period 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 Period 9 8.566 8.16 7.786 7.108 6.802 6.515 6.247 5.328 4.607 4.303 Period 10 9.471 8.983 8.530 8.111 7.722 7.350 7.024 6.710 6.418 6.145 5.650 5.216 5.019 4.833 4 494 4.192 Period 12 12.68 13.41 14.19 15.03 15.92 16.87 7.89 18.98 20.14 21.38 24.13 27.27 29.00 Period 13 13.81 14 68 15.62 16.63 18.88 20.14 21.50 22.95 24.52 28.03 32.09 34.35 Period 11 10 358 9.787 9.253 8.760 8.305 7.887 7.499 6.805 6.495 5.938 5.453 5.234 5.029 4.656 4.327 Period 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 0.50 Period 12 11.255 10.575 9.954 9.385 8.863 8.384 7.943 7.161 6.814 6.194 5.660 5.421 5.19 4.793 4.439 Period 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 Period 13 12.134 10.635 9.986 9.394 8.853 8.358 7.487 7.103 6.424 5.842 5.583 5.342 4.910 4.533 50.98 55.72 Period 14 13.004 12.106 11.296 10.563 9.899 9.295 8.745 8.244 7.786 7.367 6.628 6.002 5.724 5.46 5.008 4.611 Period 16 7.26 18.64 20.16 21.82 23.66 25.67 27.89 30.32 33.00 35.95 42.75 Period 15 13 865 12.849 1 11.938 11.118 10 380 9.712 9.108 8.559 8.061 7.606 6.811 6.142 5.847 5.575 5 092 4.675 Period 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 Period 18 19.61 21.41 41 25.65 28.13 30.91 34.00 37.45 41.30 45 60 55.75 68.39 75.84 Period 16 14 718 13.578 12.561 11.652 10.838 10.106 9. 8.851 8.313 7.824 6.974 6.265 5.954 5.669 5.162 .730 Period 19 20.81 22 84 25.12 27.67 30.54 33.76 37.38 41.45 46.02 51.16 63.44 78.97 88.21 Period 17 15 562 14.292 13.166 12.166 11.274 10.477 9.763 9.122 8.544 8.022 7.120 6.373 6.047 5.749 5.222 4.775 Period 20 22.02 24.30 26.87 29.78 33.07 36.79 1.00 45.76 51.16 57 28 72.05 91.02 102.4 Period 18 16.398 4.992 13.754 12.659 11.690 10.828 10.059 9.372 8.756 8.201 7.250 6.467 6.128 5.818 5.273 .812 13.134 4 12 085 11.158 10.336 9.604 8.950 8.365 7.366 6.550 6.198 5.877 5.316 4.844 Period 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 Period 19 17 226 15.678 14.324 Period 20 18.046 16.351 14.877 13.590 12 462 11.470 10.594 9.818 9.129 8.514 7.469 6.623 6.259 5.929 5.353 4.870 |Period 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 Period 21 18 857 17.011 15.415 14 029 12 821 11.764 10.836 10.017 7 9.292 8.649 7.562 6.687 6.312 5.973 5.384 4.891 Period 22 19 660 17.658 15.937 14.451 13.163 12.042 11.061 10 201 9.442 8.772 |7.645 5.743 6.359 6.011 5.410 4.909 Print Done (p) D 4:33 PM W 9 11/4/2021

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access with AI-Powered Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Management and Cost Accounting

Authors: Colin Drury

8th edition

978-1408041802, 1408041804, 978-1408048566, 1408048566, 978-1408093887

Students also viewed these Accounting questions