Water Planet is considering purchasing a water park in Atlanta, Georgia, for S1,870,000. 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 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. XX.) 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 vale(NPV). (Enter any factor amounts to three decimal places, X.xxx) Net Cash Inflow Annuity PV Factor (i,12%, n-8) Present Value Years 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, xxx.) Profitability index Requirement 2. Recommend whether the company should invest in this project. Recommendation: Water Planet company's required rate of return the operating life, the NPV is the invest in the project because the payback period is the profitability index is one, and the ARR and IRR are