Water Nation is considering purchasing a water park in Atlanta , Georgia for 1,920.000. The new facility will generate annual net cash inflow of 475.000 for 8 years. Engineers estimate that the new facilities will remain useful for 8 years and have no residual value. The company uses straight- line depreciation , and its stockholders demand an annual returns of 12% on investments of this nature.

Determine the formula and calculate the accounting rate of returns (ARR) . Then Calculate the net present value (NPV). (Enter any factor amounts to three decimal places, X.XXX.)