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Vater Country is considering purchasing a water park in Atlanta, Georgia, for $1,950,000. The new facility vill generate annual net cash inflows of $487,000 for

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Vater Country is considering purchasing a water park in Atlanta, Georgia, for $1,950,000. The new facility vill generate annual net cash inflows of $487,000 for eight years. Engineers estimate that the facility will emain useful for eight years and have no residual value. The company uses straight-line depreciation, and ts 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 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. Nater Country is considering purchasing a water park in Atlanta, Georgia, for $1,950,000. The new facility will generate annual net cash inflows of $487,000 for eight years. Engineers estimate that the facility will emain useful for eight years and have no residual value. The company uses straight-line depreciation, and ts 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 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.) Next, determine the folmula and calculate the accounting rate of return (ARR). (Round the percentage to the nearest tenth percent, X.X\%.) Reference Reference Reference Reference 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

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