Tidal Wave is considering purchasing a waterpark in Orlando, Florida, for $1,950,000. The new facility will generate annual net cash inflows of $505,000 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.) (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 3.9 years, (Round the percentage to the nearest tenth percent.) The ARR (accounting rate of return) is 13 % (Round your answer to the nearest whole dollar.) Net present values Enter any number in the edit fields and then continue to the next question MacBook Air 20 pil 4) TO # $ % & n Periods 1 2 3 14% 0.877 1.647 2.322 2.914 3.433 16% 0.862 1.605 2.246 2.798 3.274 18% 0.847 1.566 2.174 2.690 3.127 20% 0.833 1.528 2.106 2.589 2.991 4 Wer 5 Present Value of Annuity of $1 1% 2% 3% 4% 5% 6% 8% 10% 12% 0.990 0.980 0.971 0.962 0.952 0.943 0.926 0.9090.893 1.970 1.942 1.913 1.886 1.859 1.833 1.783 1.736 1.690 2.941 2.884 2.829 2.775 2.723 2.673 2.577 2.487 2.402 3.902 3.808 3.717 3.630 3.546 3.465 3.312 3.170 3.037 4.853 4.713 4.580 4.452 4.329 4.212 3.993 3.791 3.605 5.795 5.601 5.417 5.242 5.076 4.917 4.623 4.355 4.111 6.728 6.472 6.230 6.002 5.786 5.582 5.206 4.868 4.564 7.652 7.325 7.020 6.733 6.463 6.210 5.747 5.335 4.968 8.566 8.162 7.786 7.435 7.108 6.802 6.247 5.759 5.328 9.471 8.983 8.530 8.111 7.722 7.360 6.710 6.145 5.650 10.368 9.787 9.253 8.760 8.306 7.887 7.139 6.495 5.938 11.255 10.575 9.954 9.385 8.863 8.384 7.536 6.814 6.194 12.134 11.348 10.635 9.986 9.394 8.853 7.904 7.103 6.424 13.00412.106 11.296 10.563 9.899 9.295 8.244 7.367 6.628 13.865 12.849 11.938 11.118 10.380 9.712 8.559 7.606 6.811 7 8 3.889 4.288 4.639 4.946 5.216 3.685 4.039 4.344 4.607 4.833 3.498 3.812 4.078 4.303 4.494 3.326 3.605 3.837 4.031 4.192 9 10 ety are 11 12 13 14 15 5.453 5.660 5.842 6.002 6.142 5.029 5.197 5.342 5.468 5.575 4.656 4.793 4.910 5.008 5.092 4.327 4.439 4.533 4.611 4.675 fiel Print Done MacBook Air DO ad DD EL Reference Periods 1 2 3 4 5 1% 1.000 2.010 3.030 4.060 5.101 1.000 2.040 3.122 4.246 5.416 12% 1.000 2.120 3.374 4.779 6.353 14% 1.000 2.140 3.440 4.921 6.610 18% 1.000 2.180 3.572 5.215 7.154 6 7 8 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 3% 1.000 2030 3.091 4.184 5.309 6.468 7.662 8.892 10.159 11.484 12808 14.192 15.618 17.086 18.599 20% 1.000 2.200 3.640 5.368 7.442 9.930 12.916 16.499 20.799 25.959 6.633 7.898 9.214 10.583 12.006 Future Value of Annuity of $1 5% 6% 8% 10% 1.000 1.000 1.000 1.000 2.050 2.060 2.080 2.100 3.153 3.184 3.246 3.310 4310 4.375 4.506 4.641 5.526 5.637 5.867 6.105 6.802 6.975 7.336 7.716 8.142 8.394 8.923 9.487 9.549 9.897 10.637 11.436 11.027 11.491 12.488 13.579 12578 13.181 14.487 15.937 14.207 14.972 16.645 18.531 15.917 16870 18.977 21.384 17.713 18.882 21.495 24.523 19.599 21.015 24 215 27.975 21.579 23.276 27.152 31.772 6.152 7214 8.286 9.369 10.462 11.567 12.683 13.809 14.947 16.097 8.536 10.730 13.233 16.085 19.337 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 10 8.115 10.089 12.300 14.776 17.549 20.655 24.133 28.029 32.393 37 280 9.442 12.142 15.327 19.086 23.521 28.755 34.931 42 219 50.818 60.965 11 12 13 14 15 13.486 15.026 16.627 18 292 20.024 27.271 32.089 37.581 43.842 32.150 39.581 48.497 59. 196 72.035 Print Done MacBook Air - DOO 84 DIL F7 F9 F10 Ful A * $ 4 % 5 ) & 7 6 PE 8 9 R T Y U O P { i Reference Present Value of $1 Periods 1 2 3 4 5 1% 2% 3% 4% 0.990 0.980 0.971 0.962 0.980 0.961 0.943 0.925 0.971 0.942 0.915 0.889 0.961 0.924 0.888 0.855 0.951 0.906 0.863 0.822 0.942 0.888 0.837 0.790 0.933 0.871 0.813 0.760 0.923 0.853 0.789 0.731 0.914 0.837 0.766 0.703 0.905 0.820 0.744 0.676 ne 6 7 ya 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 12% 14% 16% 18% 20% 0.893 0.877 0.862 0.847 0.833 0.797 0.769 0.743 0.718 0.694 0.712 0.675 0.641 0.609 0.579 0.636 0.592 0.552 0.516 0.482 0.567 0.519 0.476 0.437 0.402 0.507 0.456 0.410 0.370 0.335 0.452 0.400 0.354 0.314 0.279 0.404 0.351 0.305 0.266 0.233 0.361 0.308 0.263 0.225 0.194 0.322 0.270 0.227 0.191 0.162 0.287 0.237 0.195 0.162 0.135 0.257 0.208 0.168 0.137 0.112 0.229 0.182 0.145 0.116 0.093 0.205 0.160 0.125 0.099 0.078 0.183 0.140 0.108 0.084 0.065 nel 8 9 10 retu Bare 11 12 13 14 15 0.896 0.887 0.879 0.870 0.861 0.804 0.788 0.773 0.758 0.743 0.722 0.701 0.681 0.661 0.642 0.650 0.625 0.601 0.577 0.555 Hit fie Print Done MacBook Air 200 DIL FS F6 F7 F8 F9 F10 % 5 ( & 7 6 8 9 Future Value of $1 Periods 1 2 2% 1.020 1.040 1.061 1.082 1.104 1% 1.010 1.020 1.030 1.041 1.051 1.062 1.072 1.083 1.094 1.105 3% 1.030 1.061 1.093 1.126 1.159 4% 1.040 1.082 1.125 1.170 1.217 6% 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 3 4 5 16% 1.160 1.346 1.561 1.811 2.100 2.436 2.826 3.278 3.803 4.411 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 4.300 5.160 6.192 6 5% 1.050 1.103 1.158 1216 1.276 1.340 1.407 1.477 1.551 1.629 1.710 1.796 1.886 1.980 2.079 1.126 1.149 1.172 1.195 1.219 8 9 10 1.194 1.230 1.267 1.305 1.344 1.419 1.504 1.594 1.689 1.791 1.587 1.714 1.851 1.999 2.159 1.265 1.316 1.369 1.423 1.480 1.539 1.601 1.665 1.732 1.801 1.772 1.949 2.144 2358 2.594 1.974 2 211 2.476 2.773 3.106 11 12 13 14 15 1.116 1.127 1.138 1.149 1.161 1.243 1.268 1.294 1.319 1.346 2.195 2.502 2.853 3.252 3.707 4.226 4.818 5.492 6.261 7.138 1.384 1.426 1.469 1.513 1.558 1.898 2.012 2.133 2.261 2.397 2.332 2.518 2.720 2937 3.172 2.853 3.138 3.452 3.797 4.177 3.479 3.896 4.363 4.887 5.474 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 Print Done MacBook Air ODO F 2 F7 DD F9 4 F10 F11 $ 4. - % 5 & 7 6 8 9 0 Il + R T Y U - o P. { I F G H J K This Qu Tidal Wave is considering purchasing a water park in Orlando, Florida, for $1,950,000. The new facility will gener that the facility will remain useful for eight years and have no residual value. The company uses straight-line depr or more. Management uses a 14% hurdle rate on investments of this nature. (Click the icon to view the present value annuity table.) (Click the icon to view the present value tat (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 y shown in the tables.) (Round the payback period to one decimal place.) The payback period is 3.9 years. (Round the percentage to the nearest tenth percent.) The ARR (accounting rate of return) is (Round your answer to the nearest whole dollar) Net present value $ Enter any number in the edit fields and then continue to the next question 13 % Macrook Air 80 13 000 F4 FS F7 FB # $ A % 5 3 4 & 7 6 8 E R. T Y U Tidal Wave is considering purchasing a water park in Orlando, Florida, for $1,950,000. The new facility that the facility will remain useful for eight years and have no residual value. The company uses straigh or more. Management uses a 14% hurdle rate on investments of this nature. (Click the icon to view the present value annuity table.) (Click the icon to view the presen (Click the icon to view the future value annuity table.) (Click the icon to view the future Read the requirements The ARR (accounting rate of return) is (Round your answer to the nearest whole dollar.) 13 % Net present value $ The IRR (internal rate of return) is between Requirement 2. Recommend whether the company should invest in this project. Recommendation: Invest in the new facility. Enter any number in the edit fields and then continue to the next question. MacBook Air 80 DOD DOO F4 F2 F3 F5 F6 F7 # % & $ 4 2 3 5 6 7 8 W E 20 Y