Water City is considering purchasing a waterpark in Atlanta, Georgio, for $1,800,000. The new facility will generate annual net cash inflows of $145,000 for eight years. Engineers estimate that the new facilities will remain useful for eight years and have no residual value. The company usos straight line depreciation, and its stockholders demand an annual retum of 12% on investments of this naturo. Click the foon to view the Present our oft table.) Click the loon to view the Present Value of Annuity of 1 table) 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 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, XX) Payback years Next, determine the formula and calculate the accounting rate of return (ARR) (Round the percentage to the nearest tonth percent. XX%) ARR Calculate the net present Value (NPV). (Enter any factor amounts to three decimal places, X.XXX) Net Cash Annuity PV Factor Present Calculate the net present value (NPV). (Enter any factor amounts to three decimal places, X.XXX.) Net Cash Annuity PV Factor Present Years Inflow (i=12%, n=8) Value 1 - 8 Present value of annuity 0 Investment Net present value of the investment The IRR (internal rate of return) is between Finally, determine the formula and calculate the profitability index. (Round your answer to two decimal places, X.XX.) Profitability index wydek Requirement 2. Recommend whether the company should invest in this project Recommendation Water City Invest in the project because the payback period is the operating to the NPV is the probability index is ons and the ARR and IRR are the company's required rate of return