Water World is considering purchasing a water park in Atlanta, Georgia, for $1,800,000. The new facility will generate annual net cash inflows of $462,000 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.) i Requirements Read the requirements. 1. Requirement 1. Compute the payback, the ARR, the NPV, the IRR, and the profitability index of this investment. Compute the payback, the ARR, the NPV, the IRR, and the profitability index of this investment. Recommend whether the company should invest in this project. First, determine the formula and calculate payback. (Round your answer to one decimal place, X.X.) 2. Payback Il years Print Done Present Value of $1 Periods Period 1 Period 2 Period 3 Period 4 Period 5 1% 2% 3% 4% 5% 0.990 0.980 0.971 0.962 0.952 0.980 0.961 0.943 0.925 0.907 0.971 0.942 0.915 0.889 0.864 0.961 0.924 0.888 0.855 0.823 0.951 0.906 0.863 0.822 0.784 6% 0.943 0.890 0.840 0.792 0.747 7% 0.935 0.873 0.816 0.763 0.713 8% 0.926 0.857 0.794 0.735 0.681 9% 10% 0.917 0.909 0.8420.826 0.772 0.751 0.708 0.683 0.650 0.621 12% 0.893 0.797 0.712 0.636 0.567 14% 15% 16% 18% 20% 0.877 0.870 0.862 0.847 0.833 0.769 0.756 0.743 0.7180.694 0.675 0.658 0.641 0.609 0.579 0.592 0.572 0.5520.516 0.482 0.519 0.497 0.476 0.437 0.402 Period 6 0.942 0.888 0.837 0.790 0.746 Period 7 0.933 0.871 0.813 0.760 0.711 Period 8 0.923 0.853 0.789 0.731 0.677 Period 9 0.914 0.837 0.766 0.703 0.645 Period 10 0.905 0.820 0.744 0.676 0.614 0.705 0.665 0.627 0.592 0.558 0.666 0.623 0.582 0.544 0.508 0.630 0.583 0.540 0.500 0.463 0.596 0.564 0.547 0.513 0.502 0.467 0.460 0.424 0.422 0.386 0.507 0.452 0.404 0.361 0.322 0.456 0.400 0.351 0.308 0.270 0.432 0.410 0.370 0.335 0.376 0.354 0.314 0.279 0.327 0.305 0.266 0.233 0.284 0.263 0.225 0.194 0.247 0.227 0.191 0.162 Period 11 0.896 0.8040.722 0.650 0.585 Period 12 0.887 0.788 0.701 0.625 0.557 Period 13 0.879 0.773 0.681 0.601 0.530 Period 14 0.870 0.758 0.661 0.577 0.505 Period 15 0.861 0.743 0.642 0.555 0.481 0.527 0.497 0.469 0.442 0.417 0.475 0.444 0.415 0.388 0.362 0.429 0.397 0.368 0.340 0.315 0.3880.350 0.356 0.319 0.326 0.290 0.299 0.263 0.275 0.239 0.287 0.257 0.229 0.205 0.183 0.237 0.208 0.182 0.160 0.140 0.215 0.195 0.162 0.135 0.187 0.1680.137 0.112 0.163 0.145 0.116 0.093 0.141 0.125 0.099 0.078 0.123 0.108 0.084 0.065 Period 16 Period 17 Period 18 Period 19 Period 20 0.853 0.7280.623 0.534 0.458 0.844 0.714 0.605 0.513 0.436 0.836 0.700 0.587 0.494 0.416 0.828 0.686 0.570 0.475 0.396 0.820 0.673 0.554 0.456 0.377 0.394 0.371 0.350 0.331 0.312 0.339 0.317 0.296 0.277 0.258 0.292 0.252 0.218 0.270 0.231 0.198 0.250 0.212 0.180 0.232 0.194 0.164 0.215 0.178 0.149 0.163 0.146 0.130 0.116 0.104 0.123 0.107 0.108 0.093 0.095 0.081 0.083 0.070 0.073 0.061 0.093 0.071 0.054 0.080 0.060 0.045 0.069 0.051 0.038 0.060 0.043 0.031 0.051 0.037 0.026 Period 21 0.811 0.660 0.538 0.439 0.359 0.294 Period 22 0.803 0.647 0.522 0.422 0.342 0.278 Period 23 795 0634 0507 0406 0326 0262 0.242 0.226 0 211 0.199 0.184 0170 0.164 0.135 0.150 0.123 0 138 112 0.093 0.083 074 0.064 0.056 0049 0.053 0.044 0.031 0.046 0.038 0.026 040 0033 0022 0.022 0.018 0015 Present Value of Ordinary Annuity of $1 3% 15% Periods Period 1 Period 2 Period 3 Period 4 Period 5 1% 0.990 1.970 2.941 3.902 4.853 2% 0.980 1.942 2.884 3.808 4.713 0.971 1.913 2.829 3.717 4.580 4% 5% 6% 7% 8% 9% 0.962 0.952 0.943 0.935 0.926 0.917 1.886 1.859 1.833 1.808 1.783 1.759 2.775 2.723 2.673 2.624 2.577 2.531 3.630 3.546 3.465 3.387 3.312 3.240 4.452 4.329 4.212 4.100 3.993 3.890 10% 0.909 1.736 2.487 3.170 3.791 12% 14% 0.893 0.877 1.690 1.647 2.402 2.322 3.037 2.914 3.605 3.433 0.870 1.626 2.283 2.855 3.352 16% 0.862 1.605 2.246 2.798 3.274 18% 20% 0.847 0.833 1.566 1.528 2.174 2.106 2.690 2.589 3.127 2.991 Period 6 Period 7 Period 8 Period 9 Period 10 5.795 6.728 7.652 8.566 9.471 5.601 6.472 7.325 8.162 8.983 5.417 6.230 7.020 7.786 8.530 5.242 6.002 6.733 7.435 8.111 5.076 4.917 4.767 5.786 5.582 5.389 6.463 6.210 5.971 7.108 6.802 6.515 7.722 7.360 7.024 4.623 4.486 5.206 5.033 5.747 5.535 6.247 5.995 6.710 6.418 4.355 4.111 3.889 4.868 4.564 4.288 5.335 4.968 4.639 5.759 5.328 4.946 6.145 5.650 5.216 3.784 4.160 4.487 4.772 5.019 3.685 4.039 4.344 4.607 4.833 3.498 3.326 3.812 3.605 4.078 3.837 4.303 4.031 4.494 4.192 Period 11 Period 12 Period 13 Period 14 Period 15 10.368 9.787 9.253 8.760 8.306 7.887 7.499 11.255 10.575 9.954 9.385 8.863 8.384 7.943 12.134 11.348 10.635 9.986 9.394 8.853 8.358 13.004 12.106 11.296 | 10.563 9.899 9.295 8.745 13.865 12.849 11.938 11.118 10.380 9.712 9.108 7.139 6.805 7.536 7.161 7.904 | 7.487 8.244 7.786 8.559 8.061 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 5.234 5.421 5.583 5.724 5.847 5.029 5.197 5.342 5.468 5.575 4.656 4.327 4.793 4.439 4.910 4.533 5.008 4.611 5.092 4.675 Period 16 Period 17 Period 18 Period 19 Period 20 14.718 13.578 12.561 11.652 10.838 10.106 9.447 8.851 8.313 7.824 15.562 14.292 13.166 12.166 11.274 10.4771 9.763 9.122 8.544 8.022 16.398 14.992 13.754 12.659 11.690 10.828 10.059 9.372 8.756 8.201 17.226 | 15.678 14.324 13.134 12.085 11.158 10.336 9.604 8.950 8.365 18.046 16.351 14.877 13.590 12.462 11.470 10.594 | 9.818 9.129 8.514 6.974 6.265 7.120 6.373 7.250 6.467 7.366 6.550 7.469 6.623 5.954 6.047 6.128 6.198 6.259 5.669 5.749 5.818 5.877 5.929 5.1624.730 5.222 4.775 5.273 4.812 5.3164.844 5.353 4.870 Period 21 Period 22 Period 23 18.857 17.011 15.415 14.029 12.821 11.764 10.836 10.0179.292 8.649 19.660 17.658 15.937 14.451 13.163 12.042 11.061 10.2019.442 8.772 20.456 18 292 16.444 14857 13 489112 3031 11 272 10 371 9580 8.883 7.562 7.645 7 718 6.687 6.743 6.792 6.312 6.359 6.399 5.973 6.011 6044 5.384 4.891 5.410 4.909 5432 4 925 Future Value of $1 Periods Period 1 Period 2 Period 3 Period 4 Period 5 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% 5% 6% 7% 1.040 1.050 1.060 1.070 1.082 1.103 1.1241.145 1.125 1.158 1.191 1.225 1.170 1.216 1.262 1.311 1.217 1.276 1.338 1.403 8% 9% 10% 1.080 1.090 1.100 1.166 | 1.188 1.210 1.260 1.295 1.331 1.360 1.412 1.464 1.469 1.539 1.611 12% 14% 15% 1.120 1.140 1.150 1.254 1.300 1.323 1.405 1.482 1.521 1.574 1.689 1.749 1.762 1.925 2.011 Period 6 Period 7 Period 8 Period 9 Period 10 1.062 1.072 1.083 1.094 1.105 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 1.340 1.407 1.477 1.551 1.629 1.419 1.504 1.594 1.689 1.791 1.501 1.606 1.718 1.838 1.967 1.587 1.677 1.772 1.974 2.1952.313 1.714 | 1.828 1.949 2.211 2.502 2.660 1.851 1.993 2.144 2.476 2.853 3.059 1.999 2.172 2.358 2.7733.252 3.518 2.159 2.367 2.594 3.106 3.707 4.046 1.480 Period 11 Period 12 Period 13 Period 14 Period 15 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 1.898 2.105 2.332 2.580 2.853 1.796 2.012 2.252 2.518 2.813 3.138 1.886 2.133 | 2.410 2.720 3.066 3.452 1.980 2.261 2.579 2.937 3.342 3.798 2.079 2.3972.759 3.172 3.642 4.177 3.479 4.226 4.652 3.896 4.818 5.350 4.363 5.492 6.153 4.887 6.261 | 7.076 5.474 | 7.1388.137 Period 16 Period 17 Period 18 Period 19 Period 20 1.173 1.184 1.196 1.208 1.220 1.373 1.605 1.873 2.183 2.540 2.952 3.426 3.970 4.595 1.400 1.653 1.948 2.292 2.693 3.159 3.700 4.328 5.054 1.428 1.702 2.026 2.407 2.854 3.380 3.996 4.717 5.560 1.457 1.754 2.107 2.527 3.026 3.617 4.316 5.142 6.116 1.486 1.806 2.191 2.653 3.207 3.870 4.661 5.604 6.727 6.130 8.137 9.358 6.866 9.276 10.76 7.690 10.58 12.38 8.613 12.06 14.23 9.646 13.74 16.37 Period 21 Period 22 Period 23 1.232 1.245 1 257 1.516 1.546 1577 1.860 1.916 1 974 2.279 2.786 3.400 4.141 5.034 6.109 7.400 2.370 2.925 3.604 4.430 5.437 6.659 8.140 2465 3072 3.820 4 741 5871 7 258 8.954 10.80 12.10 13.55 15.67 18.82 17.86 21.64 20.36 24.89 Future Value of Ordinary Annuity of $1 Periods Period 1 Period 2 Period 3 Period 4 Period 5 1% 2% 3% 4% 5% 1.000 1.000 1.000 1.000 1.000 2.010 2.020 2.030 2.040 2.050 3.030 3.060 3.091 3.122 3.153 4.060 4.122 4.184 4.246 4.310 5.101 5.204 5.309 5.416 5.526 6% 1.000 2.060 3.184 4.375 5.637 7% 1.000 2.070 3.215 4.440 5.751 8% 9% 10% 12% 14% 1.000 1.000 1.000 1.000 1.000 2.080 2.090 2.100 2.1202.140 3.246 3.278 3.310 3.374 3.440 4.506 4.573 4.6414.779 4.921 5.867 5.985 6.105 6.353 6.610 15% 1.000 2.150 3.473 4.993 6.742 Period 6 Period 7 Period 8 Period 9 Period 10 6.152 6.308 6.468 6.633 6.802 7.214 7.434 7.662 7.898 8.142 8.286 8.583 8.8929.214 9.549 9.369 9.755 10.16 10.58 11.03 10.46 10.95 11.46 12.01 12.58 6.975 7.153 7.336 7.523 7.716 8.394 8.654 8.923 9.200 9.487 9.897 10.260 10.64 11.03 11.44 11.49 11.98 12.49 13.02 13.58 13.18 13.82 14.49 | 15.1915.94 8.115 8.536 10.09 10.73 12.30 13.23 14.78 16.09 17.55 19.34 8.754 11.07 13.73 16.79 20.30 Period 11 Period 12 Period 13 Period 14 Period 15 11.57 12.17 | 12.81 | 13.49 14.21 12.68 13.41 | 14.19 15.03 15.92 13.81 14.68 15.62 16.63 17.71 14.95 15.97 17.0918.29 19.60 16.10 17.29 18.60 20.02 21.58 14.97 16.87 18.88 21.02 23.28 15.78 16.65 | 17.56 18.53 20.65 23.04 17.89 18.98 20.14 21.38 24.13 27.27 20.14 21.50 22.95 24.52 28.03 32.09 22.55 24.21 26.02 27.98 32.39 37.58 25.13 27.15 29.3631.77 37.28 43.84 24.35 29.00 34.35 40.50 47.58 Period 16 Period 17 Period 18 Period 19 Period 20 17.26 18.64 20.16 21.8223.66 18.43 20.01 21.76 23.70 25.84 19.61 21.41 23.4125.65 | 28.13 20.81 22.84 25.12 27.67 30.54 22.02 24.30 26.87 29.78 33.07 25.67 28.21 30.91 33.76 36.79 27.89 30.32 33.00 35.95 42.75 50.98 30.84 33.75 36.97 40.54 48.88 59.12 34.00 37.45 41.30 45.60 55.7568.39 37.38 41.45 46.02 51.16 63.44 78.97 41.00 45.76 51.16 57.28 | 72.05 | 91.02 55.72 65.08 75.84 88.21 102.4 Period 21 Period 22 Period 23 23.24 25.78 28.68 31.97 35.72 39.99 24.47 27.30 30.54 34.25 38.51 43.39 25 72 28.85 3245 36.62 41 43 47 00 44.87 50.42 56.76 64.00 81.70 104.8 49.01 55.46 62.87 71.40 92.50 120.4 5344 60.89 69.53 | 79.54 1046 1383 118.8 137.6 1593