Water Planet is considering purchasing a waterpark in Atlanta, Georgia, for $1,800,000. The new facility will generate annual net cash inflows of $460,000 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 it stockholders demand an annual return of 10% on investments of this nature.

There are four different present and future value tables, let me know if you need them, I figured they are general and you may have your own access to them.

i Requirements X 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