Water Country is considering purchasing a water park in Atlanta, Georgia, for $1,870,000. The new facility will generate annual net cash inflows of $475,000 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.) Payback years Next, determine the formula and calculate the accounting rate of return (ARR). (Round the percentage to the nearest tenth percent, X.X%.) ARR % Calculate the net present value (NPV). (Enter any factor amounts to three decimal places, X.XXX.) Choose from any list or enter any number in the input fields and then continue to the next question Water Country is considering purchasing a water park in Atlanta, Georgia, for $1,870,000. The new facility will generate annual net cash inflows of $475,000 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. Calculate the net present value (NPV). (Enter any factor amounts to three decimal places, X.XXX.) Net Cash Present Years Annuity PV Factor (i=10%, n=8) Inflow Value 1-8 0 Present value of annuity 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) Choose from any list or enter any number in the input fields and then continue to the next question. Water Country is considering purchasing a water park in Atlanta, Georgia, for $1,870,000. The new facility will generate annual net cash inflows of $475,000 for eight years. Engineers estimate that the facility will remain use 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 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 inde. + + II Requirement 2. Recommend whether the company should invest in this project. I Recommendation: Water Country invest in the project because the payback period is the operating life, the NPV is the profitability index is one, and the ARR and IRR are the company's required rate of return. Choose from any list or enter any number in the input fields and then continue to the next question. Get More Help Present Value of $1 Periods 1% 2% 3% 4% 5% 6% 7% Period 1 0.990 0.980 0.971 0.962 0.952 0.943 0.935 Period 2 0.980 0.9610.943 0.925 0.907 0.890 0.873 Period 3 0.971 0.942 0.915 0.889 0.864 0.840 0.816 Period 4 0.961 0.924 0.888 0.855 0.823 0.792 0.763 Period 5 0.951 0.906 0.863 0.822 0.784 0.747 0.713 Period 6 0.942 0.888 0.837 0.790 0.746 0.705 0.666 Period 7 0.933 0.871 0.813 0.760 0.711 0.665 0.623 Period 8 0.923 0.853 0.789 0.731 0.677 0.627 0.582 Period 9 0.914 0.837 0.766 0.703 0.645 0.592 0.544 Period 10 0.905 0.820 0.744 0.676 0.614 0.558 0.508 Period 11 0.896 0.8040.722 0.650 0.585 0.527 0.475 Period 12 0.887 0.788 0.701 0.625 0.557 0.497 0.444 Period 13 0.879 0.773 0.681 0.601 0.530 0.469 0.415 Period 14 0.870 0.758 0.661 0.577 0.505 0.442 0.388 Period 15 0.861 0.743 0.642 0.555 0.481 0.417 0.362 Period 16 0.853 0.728 0.623 0.534 0.458 0.394 0.339 Period 17 0.844 0.7140.605 0.513 0.436 0.371 0.317 Period 18 0.836 0.700 0.587 0.494 0.416 0.350 0.296 Period 19 0.828 0.686 0.570 0.475 0.396 0.331 0.277 Period 20 0.820 0.673 0.554 0.456 0.377 0.312 0.258 Period 21 0.811 0.660 0.538 0.439 0.359 0.294 0.242 Period 22 0.803 0.647 0.522 0.422 0.342 0.278 0.226 Period 23 0.795 0.634 0.507 0.406 0.326 0.262 0.211 Period 24 0.788 0.622 0.492 0.390 0.310 0.247 0.197 Period 25 0.780 0.610 0.478 0.375 0.295 0.233 0.184 8% 9% 10% 12% 14% 15% 16% 18% 20% 0.926 0.917 0.909 0.893 0.877 0.870 0.862 0.847 0.833 0.857 0.842 0.826 0.797 0.769 0.756 0.743 0.718 0.694 0.794 0.772 0.751 0.712 0.675 0.658 0.641 0.609 0.579 0.735 0.708 0.683 0.636 0.592 0.572 0.552 0.516 0.482 0.681 0.650 0.621 0.567 0.519 0.497 0.476 0.437 0.402 0.630 0.596 0.564 0.507 0.456 0.432 0.410 0.370 0.335 0.583 0.547 0.513 0.452 0.400 0.376 0.354 0.3140.279 0.540 0.502 0.467 0.4040.351 0.327 0.305 0.266 0.233 0.500 0.460 0.424 0.361 0.308 0.284 0.263 0.225 0.194 0.463 0.422 0.386 0.322 0.270 0.247 0.227 0.191 0.162 0.429 0.388 0.3500 287 0.237 0.215 0.195 0.162 0.135 0.397 0.356 0.319 0.257 0.208 0. 0.1680.137 0.112 0.368 0.326 0.290 0.229 0.182 0.163 0.145 0.116 0.093 0.340 0.299 0.263 0.205 0.160 0.141 0.125 0.099 0.078 0.315 0.275 0.239 0.183 0.1400.123 0.108 0.084 0.065 0.292 0.252 0.218 0.163 0.123 0.107 0.093 0.071 0.054 0.270 0.231 0.198 0.146 0.108 0.093 0.080 0.060 0.045 0.250 0.212 0.180 0.130 0.095 0.081 0.069 0.051 0.038 0.232 0.1940.164 0.116 0.083 0.070 0.060 0.043 0.031 0.215 0.178 0.149 0.104 0.073 0.061 0.051 0.037 0.026 0.199 0.164 0.135 0.093 0.064 0.053 0.044 0.031 0.022 0.184 0.150 0.123 0.083 0.056 0.046 0.038 0.026 0.018 0.170 0.138 0.11 0.074 0.049 0.040 0.033 0.022 0.015 0.158 0.125 0.102 0.066 0.043 0.035 0.028 0.019 0.013 0.146 0.116 0.092 0.059 0.038 0.030 0.024 0.016 0.010 nce Future Value of $1 5% 4% 2% 8% 10% 7% 6% 3% Periods 1% 9% 12% 14% 15% Period 1 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 2 1.020 1.040 1.061 1.0821.103 1.124 1.145 1.166 1.188 1.210 1.254 1.300 1.323 1.405 1.482 1.521 Period 3 1.030 1.061 1.093 1.125 1.158 1.191 1.225 1.260 1.295 1.331 Period 4 1.041 1.082 1.126 1.170 1.216 1.262 1.311 1.360 1.412 1.464 1.574 1.689 1.749 Period 5 1.051 1.104 1.159 1.217 1.276 1.338 1.403 1.469 1.539 1.611 1.762 1.925 2.011 Period 6 1.062 1.126 1.194 1.265 1.340 1.419 1.501 1.587 1.677 1.772 1.974 2.1952.313 Period 7 1.072 1.149 1.230 1.316 1.407 1.504 1.606 1.714 1.828 1.949 2.211 2.502 2.660 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 9 1.094 1.195 1.305 1.423 1.551 1.689 1.838 1.999 2.172 2.358 2.773 3.252 3.518 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 11 1.116 1.243 1.384 1.539 1.710 1.898 2.105 2.332 2.580 2.853 3.479 4.226 4.652 Period 12 1.127 1.268 1.426 1.601 1.796 2.012 2.252 2.518 2.813 3.138 3.896 4.818 5.350 Period 13 1.138 1.294 1.469 1.665 1.886 2.133 2.410 2.720 3.066 3.452 4.363 5.492 6.153 Period 14 1.149 1.319 1.513 1.732 1.980 2.261 2.579 2.937 3.342 3.798 4.887 6.261 7.076 Period 15 1.161 1.346 1.558 1.801 2.079 2.397 2.759 3.172 .642 4.177 5.474 7.138 8.137 Period 16 1.173 1.373 1.605 1.873 2.183 2.540 2.952 3.426 3.970 4.595 6.130 8.137 9.358 Period 17 1.184 1.400 1.653 1.948 2.292 2.693 3.159 3.700 4.328 5.054 6.866 9.276 10.76 Period 18 1.196 1.428 1.702 2.026 2.407 2.854 3.380 3.996 4.717 5.560 7.690 10.58 12.38 Period 19 1.208 1.457 1.754 2.107 2.527 3.026 3.617 4.316 5.142 6.116 8.613 12.06 14.23 Period 20 1.220 1.486 1.806 2.191 2.653 3.207 3.870 4,661 5.6046.727 9.646 13.74 16.37 Period 21 1.232 1.516 1.860 2.279 2.786 3.400 4.1415.034 6.1097.400 10.80 15.67 18.82 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 Period 23 1.257 1.577 1.974 2.465 3.072 3.820 4.741 5.871 7 258 8.954 Period 24 13.55 20.36 24.89 1.270 1.608 2.033 2,563 3.225 4,049 5.072 6.341 7.911 9.850 Period 25 15.18 23.21 28.63 1 282 1.641 2.094 2.666 3.386 4.292 5.427 6.848 8.623 10.83 17.00 26.46 32.92 18% Present Value of Ordinary Annuity of $1 Periods 1% 20% 2% 3% 4% 6% 5% 14% 16% 7% 8% 9% 15% 12% 10% Period 1 0.990 0.980 0.971 0.862 0.847 0.833 0.962 0.952 0.943 0.935 0.926 0.917 0.909 0.893 0.877 0.870 1.605 1.566 1.528 Period 2 1.970 1.942 1.913 1.886 1.859 1.833 1.808 1.783 1.759 1.736 1.690 1.647 1.626 2.174 2.106 Period 3 2.246 2.9412.884 2.829 2.775 2.723 2.673 2.624 2.577 2.531 2.487 2402 2.322 2.283 Period 4 3.902 3.808 3.717 3.630 3.546 3.465 3.387 3.312 3.240 3.170 3.037 2.914 2.855 2.798 2.690 2.589 Period 5 4853 4.713 4.580 4.452 4.329 4.212 4.100 3.993 3.890 3.791 3.605 3.433 3.352 3.274 3.127 2.991 Period 6 5.795 5.601 5417 5.242 5,076 4.917 4.767 4.623 4486 4.355 4.111 3.889 3.784 3.685 3.498 3.326 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 8 7.652 7.325 7,020 6.733 6.463 6.210 5.971 5.747 5.535 5.335 4.968 4.639 4.487 4.344 4.078 3.837 Period 9 8.566 8.1627.786 7435 7.108 6.802 6.515 6.247 5.9955.759 5.328 4.946 4.772 4.607 4.303 4.031 Period 10 9.471 8.983 8,530 8.111 7.722 7.360 7.024 6.710 6.418 6.145 5.6505.216 5.019 4,833 4.494 4.192 Period 11 10.368 9.787 9.253 8.760 8.306 7.8877499 7.139 6.805 6.495 5.938 5,453 5.234 5.029 4.656 4.327 Period 12 11.255 10.575 9.954 9,385 8.863 8,384 7.943 7536 7.161 6.814 6.194 5.660 5.421 5.197 4.793 4.439 Period 13 12.134 11.348 10.635 9.986 9.394 8.853 8.358 7.904 7.487 7.103 6.424 5.842 5.583 5.342 4.910 4.533 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 5.468 5.008 4.611 Period 15 13.865 12.849 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 16 14.718 13.578 12.561 11.652 10.838 10.106 9447 8.851 8.313 7.824 6.974 6.265 5.954 5.669 5.162 4.730 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 5222 4.775 Period 18 16.398 14.992 13.754 12.659 11.690 10.828 10.059 9.372 8.7568.201 7.250 6.467 6.128 Period 19 5.818 5.273 4.812 17.226 15.678 14 324 13.134 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 20 18.046 16.351 14.877 13.590 12.462 11.470 10.594 9.818 9.129 8.5147469 6.623 6.259 5.929 5.353 4.870 Period 21 18.857 17.011 15.415 14.029 12.821 11.764 10.836 10.017 9.292 8.649 7.562 6.687 Period 22 19.860 17.658 15.937 14.451 13.163 12.042 11.061 10.201 9.442 8.772 7.645 6.7436.359 6.312 5.973 5.384 4.891 Period 23 20 456 18 292 16.444 14.857 13.48912 303 11 272 10.371 9.5808.883 6.011 5.410 4.909 7.718 6.792 6.399 Period 24 21.243 18.914 16.936 15 247 13.799 12.550 11.469 10.529 9.707 8.985 7.784 6.835 6.044 5.432 4.925 Period 25 22.023 19.523 17 413 15.622 14.094 12.783 11.654 10.675 9.8239.077 7.843 6.873 6.434 6,073 5.451 4.937 6.464 6.097 5.467 4.948 Future Value of Ordinary Annuity of $1 Periods 1% 2% 3% 4% 5% 6% 7% 8% 9% 10% 12% 14% 15% 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 2020 2030 2040 2.050 2.060 2.070 2.080 2090 2.100 2.120 2.140 2.150 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 4 4.060 4.122 4.184 4.246 4.310 4.375 4440 4.506 4.573 4.641 4.779 4.921 4.993 Period 5 5.101 5.204 5.309 5.416 5.526 5.637 5.751 5.8675.985 6.105 6.353 6.610 6.742 Period 6 6.152 6.308 6.468 6.633 6.802 6.975 7.1537.336 7.523 7.716 8.115 8.536 8.754 Period 7 7214 7.434 7.662 7.898 8.142 8.394 8.654 8.923 9.200 9.487 10.09 10.73 11.07 Period 8 8.286 8.583 8.892 9.2149.549 9.897 10.260 10.64 11.03 11.44 12.30 13.23 13.73 Period 9 9.369 9.755 10.16 10.58 11.03 11.49 11.98 12.49 13.02 13.58 14.78 16.09 16.79 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 11 11.57 12.17 12.8113.49 14.21 14.97 15.78 16.65 17.56 18.53 20.65 23.04 24.35 Period 12 12.68 13.41 14.19 15.03 15.92 16.87 17.89 18.98 20.14 21.38 24.13 27.27 29.00 Period 13 13.81 14.68 15.62 16.63 17.71 18.88 20.14 21.50 22.95 24.52 28.03 | 32.09 34 35 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 40.50 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 16 1726 18.64 20.16 21.82 23.66 25.67 27.89 30.32 33.00 35.95 42.75 50.98 55.72 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 2141 23.41 25.65 28.13 30.91 34.00 37.45 41.30 45.60 55.75 68.39 75.84 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 20 22.02 2430 26.87 29.7833.07 36.79 41.00 45.76 51.16 5728 72.05 91.02 102.4 Period 21 23 24 25.78 28.68 31.9735.72 39.99 44.87 50.42 56.76 64.00 81.70 104.8 118.8 Period 22 24.47 27 30 30.54 3425 38.51 43.39 49.01 55.46 62.87 71.40 92.50 120.4 137.6 Period 23 25.72 28.85 32.45 36.62 4143 47.00 53.44 60.89 69.53 79.54 104.6 138,3 159.3 Period 24 26.97 30.42 34 43 39.08 44.50 50.82 58.18 66.76 76.7988.50 118.2 158.7 184.2 Period 25 28.24 32.03 36.46 41.65 47.73 54 86 63.25 73.11 84.70 98.35 133.3 181.9 212.8 and in