Water Planet is considering purchasing a water park in Orlando, Florida, for $2,050,000. The new facility will generate annual net cash inflows of $520,000 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. Its owners want payback in less than five years and an ARR of 10% or more. Management uses a 12% hurdle rate on investments of this nature. (Click the icon to view the present value annuity table.) (Click the icon to view the present value table. (Click the icon to view the future value annuity table.) Click the icon to view the future value table.) Read the requirements. Requirement 1. Compute the payback period, the ARR, the NPV, and the approximate IRR of this investment. (If you use the tables to compute the IRR, answer with the closest interest rate shown in the tables.) (Round the payback period to one decimal place.) The payback period is years. i Reference Present Value of Annuity of $1 Periods 1% 2% 0.990 0.980 1.970 1.942 2.9412.884 3.902 3.808 4.713 3% 0.971 1.913 2.829 3.717 4.580 4% 0.962 1.886 2.775 3.630 4.452 5% 0.952 1.859 2.723 3.546 4.329 6% 0.943 1.833 2.673 3.465 4.212 8% 0.926 1.783 2.577 3.312 3.993 10% 0.909 1.736 2.487 3.170 3.791 12% 0.893 1.690 2.402 3.037 3.605 14% 0.877 1.647 2.322 2914 3.433 16% 0.862 1.605 2.246 2700 3.274 18% 0.847 1.566 2.174 2.690 3.127 20% 0.833 1.528 2.106 2.589 2.991 - 853 795 U 3.326 1605 0 652 = 5.417 6.230 7.020 7.786 8.530 5.242 5.076 6.002 5.786 6.733 6.463 7.435 | 7.108 8.111 7.722 4.917 5.582 6.210 6.802 7.360 4.623 5.206 5.747 6.247 6.710 4.355 4.868 5.335 5.759 6.145 4.111 4.564 4.968 5.328 5.650 3.889 4.288 4.639 4.946 5.216 3.685 4.039 4.344 4.607 4.833 3.498 3.812 4.078 4.303 4.494 m 031 to 192 5.601 .728 6.472 7.325 566 8.162 9.471 8.983 10.368 | 9.787 11.255 10.575 11.348 12.106 12.849 4.327 4.439 12.134 9.2538.760 8.306 9.954 9.385 8.863 10.635 9.9869.394 11.296 | 10.563 9.899 11.938 11.118 10.380 7.887 8.384 8.853 9.295 9.712 7.139 7.536 7.904 8.244 8.559 6.495 6.814 7.103 7.367 7.606 5.938 6.194 6.424 6.628 6.811 5.453 5.660 5.842 6.002 6.142 5.029 5.197 5.342 5.468 5.575 4.656 4.793 4.910 5.008 5.092 si 4.675 6.623 6.873 18.046 16.351 14.877 13.590 12.462 | 11.470 19.523 17.413 15.622 14.094 12.783 22.396 19.600 17.292 15.372 13.765 32.835 27.355 23.115 19.793 17.159 15.046 9.818 8.514 7.469 10.675 9.077 7.843 11.2589.427 8.055 11.925 9.7798.244 5.929 6.097 6.177 6.233 7.003 7.105 5.353 5.467 5.517 5.548 4.870 4.948 4.979 4.997 40 Print Done i Reference Present Value of $1 Periods 1% 0.990 0.980 0.971 8% 0.926 0.857 2% 0.980 0.961 0.942 0.924 0.906 3% 0.971 0.943 0.915 0.888 0.863 4% 0.962 0.925 0.889 0.855 0.822 5% 0.952 | 0.907 0.864 0.823 0.784 6% | 0.943 | 0.890 | 0.840 | 0.792 0.747 10% 0.909 0.826 0.751 0.683 0.621 12% 0.893 0.797 0.712 0.636 0.567 14% 0.877 0.769 0.675 0.592 0.519 16% 0.862 0.743 0.641 0.552 0.476 18% 0.847 0.718 | 0.609 0.516 0.437 20% 0.833 0.694 0.579 0.482 0.402 0.794 0.961 0.951 0.735 0.681 0.507 0.452 0.942 0.933 0.923 0.914 0.905 0.888 0.871 0.853 0.837 0.820 0.837 0.813 0.789 0.766 0.744 0.790 0.760 0.731 0.703 0.676 0.746 0.711 0.677 0.645 0.614 0.705 0.665 0.627 0.592 0.558 0.630 0.583 | 0.540 0.500 0.463 0.564 0.513 0.467 0.424 0.386 0.404 0.456 0.400 0.351 0.308 0.270 0.410 0.354 0.305 0.263 0.227 0.370 0.314 0.266 0.225 0.191 0.335 0.279 0.233 0.194 0.162 0.361 0.322 0.350 0.195 0.168 0.896 0.887 0.879 0.870 0.861 0.804 0.788 0.773 0.758 0.743 0.722 0.701 0.681 0.661 0.642 0.650 0.625 0.601 0.577 0.555 0.585 0.557 0.530 0.505 0.481 0.527 0.497 0.469 0.442 0.417 0.429 0.397 0.368 0.340 0.315 0.287 0.257 0.229 0.205 0.183 0.319 0.290 0.263 0.239 0.237 0.208 0.182 0.160 0.140 0.145 0.162 0.137 0.116 0.099 0.084 0.135 0.112 0.093 0.078 0.065 0.125 0.108 0.377 0.820 0.780 0.742 0.672 0.673 0.554 0.610 0.478 0.5520.412 0.453 0.307 0.456 0.375 0.308 0.208 0.295 | 0.231 0.142 0.312 0.233 0.174 0.097 0.215 0.146 0.099 0.046 0.149 0.092 0.057 0.022 0.104 0.073 0.059 0.038 0.033 0.020 0.0110.005 0.051 0.024 0.012 0.003 0.037 0.016 0.007 0.001 0.026 0.010 0.004 0.001 Print Done i Reference Future Value of Annuity of $1 Periods 5% 1.000 2.050 1% 1.000 2.010 3.030 4.060 5.101 2% 1.000 2.020 3.060 4.122 5.204 3% 1.000 2.030 3.091 4.184 5.309 4% 1.000 2.040 3.122 4.246 5.416 3.153 6% 1.000 2.060 3.184 4.375 5.637 8% 1.000 2.080 3.246 4.506 5.867 10% 1.000 2.100 3.310 4.641 6.105 12% 1.000 2.120 3.374 4.779 6.353 14% 1.000 2.140 3.440 4.921 6.610 16% 1.000 2.160 3.506 5.066 6.877 18% 1.000 2.180 3.572 5.215 7.154 20% 1.000 2.200 3.640 5.368 7.442 4.310 5.526 Ovo own 6.152 7.214 8.286 9.369 10.462 6.308 7.434 8.583 9.755 10.950 6.468 7.662 8.892 10.159 11.464 6.633 7.898 9.214 10.583 12.006 6.802 8.142 9.549 11.027 12.578 6.975 8.394 9.897 11.491 13.181 7.336 8.923 10.637 12.488 14.487 7.716 9.487 11.436 13.579 15.937 8.115 10.089 12.300 14.776 17.549 8.977 11.414 14.240 17.519 21.321 9.442 12.142 15.327 19.086 23.521 9.930 12.916 16.499 20.799 25.959 8.536 10.730 13.233 16.085 19.337 23.045 27.271 32.089 37.581 43.842 12.169 13.412 14.680 14.207 15.917 11.567 12.683 13.809 14.947 16.097 20.655 24.133 12.808 14.192 15.618 17.086 18.599 13.486 15.026 16.627 18.292 20.024 17.713 14.972 16.870 18.882 21.015 23.276 16.645 18.977 21.495 24.215 27.152 18.531 21.384 24.523 27.975 31.772 28.029 25.733 30.850 36.786 43.672 51.660 28.755 34.931 42.219 50.818 60.965 32.150 39.581 48.497 59.196 72.035 15.974 19.599 21.579 17.293 32.393 37.280 SMS a 22.019 28.243 34.785 48.886 24.297 32.030 40.568 60.402 26.870 36.459 47.575 75.401 29.778 41.646 56.085 95 026 33.066 47.727 66.439 120.800 36.786 54.865 | 79.058 154.762 45.762 73.106 113.283 259.057 57 275 72.052 91.025 115.380 146.628 186.688 98.347 133.334 181.871 249.214 342.603 471.981 164.494 241.333 | 356.787 530.312790.948 1,181.882 442.593767.091 | 1,342.025 2,360.757 4,163.213 7,343.858 Print Done Reference Future Value of $1 Periods 1% 1.010 1.020 1.030 1.041 1.051 2% 1.020 1.040 1.061 1.082 1.104 3% 1.030 1.061 1.093 1.126 1.159 4% 1.040 1.082 1.125 1.170 1.217 5% 1.050 1.103 1.158 1.216 1.276 6% 1.060 1.124 1.191 1.262 1.338 8% 1.080 1.166 1.260 1.360 1.469 10% 1.100 1.210 1.331 1.464 1.611 12% 1.120 1.254 1.405 1.574 1.762 14% 1.140 1.300 1.482 1.689 1.925 16% 1.160 1.346 1.561 1.811 2.100 20% 1.200 1.440 18% 1.180 1.392 1.643 1.939 2.288 1.728 2.074 2.488 1.062 1.072 1.083 1.126 1.149 1.172 1.195 1.219 1.194 1.230 1.267 1.305 1.344 1.265 1.316 1.369 1.423 1.480 1.340 1.407 1.477 1.551 1.629 1.419 1.504 1.594 1.689 1.791 1.587 1.714 1.851 1.999 2.159 1.772 1.949 2.144 2.358 2.594 1.974 2.211 2.476 2.773 3.106 2.195 2.502 2.853 3.252 3.707 2.436 2.826 3.278 3.803 4.411 2.700 3.185 3.759 4.435 5.234 2.986 3.583 4.300 5.160 6.192 1.094 1.105 1.116 1.127 1.138 1.149 1.161 1.243 1.268 1.294 1.319 1.346 1.384 1.426 1.469 1.513 1.558 1.539 1.601 1.665 1.732 1.801 1.710 1.796 1.886 1.980 2.079 1.898 2.012 2.133 2.261 2.397 2.332 2.518 2.720 2.937 3.172 2.853 3.138 3.452 3.797 4.177 3.479 3.896 4.363 4.887 5.474 4.226 4.818 5.492 6.261 7.138 5.117 5.936 6.886 7.988 9.266 6.176 7.288 8.599 10.147 11.974 7.430 8.916 10.699 12.839 15.407 1.220 1.282 1.348 1.489 3.207 4.292 1.486 1.641 1.811 2. 208 1.806 2.094 2.427 3.262 2.191 2.666 3.243 4.801 2.653 3.386 4.322 7,040 4.661 6.848 10.063 21.725 6.727 10.835 17.449 145.259 9.646 17.000 29.960 93.051 13.743 26.462 50.950 188.884 19.461 40.874 85.850 378.721 27.393 62.669 143.371 750.378 38.338 95.396 237.376 1,469.772 5.743 10.286 Print Done Requirements - X 1. Compute the payback period, the ARR, the NPV, and the approximate IRR of this investment. (If you use the tables to compute the IRR, answer with the closest interest rate shown in the tables.) 2. Recommend whether the company should invest in this project. Print Done