Water Nation is considening purchasing a water park in Atlarta, Georga, loe $1,800,000. The now facility will generato annual net cash intlows of $457,000 for eight years. Engineers 12% on inwestments of this nature. (Click the icon to view ithe Present Walue of St table.) (Click the icon to view Present Vabo of Osdinary Anouty of 51 table) (Click the icon to view Future Value of $2 table) (Cick the icon to vow Future Value of Orifinary Annuity of $1 table) Rewa the restitremerte Requirement 1 Compute the prytuck, the ARR, the NPV, the IRR, and the peofitabily index of thes investment First, determine the formula and calculate payback (Round your amaner to one docimal place, x ) Water Nation is considering purchasing a water park in Atlanta, Georgia, for $1,800,000. The new facility will generate annual net ca estimate that the facility will remain useful for eight years and have no residual value. The company uses straight-line depreciation, 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. The IRR (internal rate of retum) is between Finally, determine the formula and calculate the profitability index. (Round your answer to two decimal places, X.XX) Water Nation is considering purchasing a water park in Allanta, Georgia, for $1,800,000. The new tacility will generate arnuel net cash intlows of $457,000 for eggnt years. Engneers 12% on investments of this nature. (Click the icon to view the Present Value of \$1 table) (Cick the icon to view Prusunt Value of Ordinary Annuty of 51 table) (Click the icon to viow Future Value of $1 table) (Click the icon to view future Value of Odinary Annuty of Si table) Read the rogpirements: The IRR (internal rate of return) is between Finnlly, determine the formuta and calculate the profitablity index, (Round your acsmer to two decimal places, XXXX) = Prolitabitity inder Requirement 2 Recommend whether the compurry should irwest in this project Recommendation Water Nation irvest in the propect beciuse the paytuck period is the operating lite, the NPV is the prolitability index is one, and the ARR and IRR ave the compary/s roquired rate of roturn. 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. Reference Reference Reference Reference
