Water World is considering purchasing a water park in Orlando, Florida, for $2,100,000. The new facility will generate annual net cash inflows of $490,000 for ten years. Engineers estimate that the facility will remain useful for ten 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 naturo. (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.) i Requirements The payback period is years. 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 Enter any number in the edit fields and then click Check Answer. i Reference - X. Periods 14% 0.877 1.647 2.322 2.914 3.433 16% 0.862 1.605 2.246 2.798 3.274 3.546 6.472 5.206 3.889 4.288 4.639 = o voow 1% 2% 3% 4% 0.990 0.980 0.971 0.962 1.970 1.942 1.913 1.886 2.941 2.884 2.829 2.775 3.902 3.808 3.717 3.630 4.853 4.713 4.580 4.452 5.795 5.601 5.417 5.242 6.728 6.230 6.002 7.652 7.325 7.020 6.733 8.566 8.162 7.786 7.435 9.471 8.983 8.530 8.111 10.368 9.253 8.760 11.255 10.575 9.954 9.385 12.134 11.348 10.635 9.986 13.004 12.106 11.296 10.563 13.865 12.849 11.938 11.118 18.046 16.351 14.877 13.590 22.023 19.523 17.413 15.622 25.80822.396 | 19.600 17.292 32.835 27.355 23.115 19.793 Present Value of Annuity of $1 5% 6% 8% 10% 12% 0.952 0.943 0.926 0.9090.893 1.859 1.833 1.783 1.736 1.690 2.723 2.673 2.577 2.487 2.402 3.465 3.312 3.170 3.037 4.329 4.212 3.993 3.791 3.605 5.076 4.917 4.623 4.355 4.111 5.786 5.582 4.868 4.564 6.463 6.210 5.747 5.335 4.968 7.108 6.802 6.247 5.759 5.328 7.722 7.360 6.710 6.145 5.650 8.306 7.887 7.139 6.495 5.938 8.863 8.384 7.536 6.814 6.194 9.394 8.853 7.904 7.103 6.424 9.899 9.295 8.244 7.367 6.628 10.380 9.712 8.559 7.606 6.811 12.462 11.470 9.818 8.514 7.469 14.094 12.783 10.675 9.077 7.843 15.372 | 13.765 11.258 9.427 8.055 17.159 15.046 11.925 9.7798.244 4.946 3.685 4.039 4.344 4.607 4.833 5.029 18% 0.847 1.566 2.174 2.690 3.127 3.498 3.812 4.078 4.303 4.494 4.656 4.793 4.910 5.008 5.092 5.353 5.467 5.517 5.548 5.216 5.453 5.660 5.842 6.002 6.142 6.623 6.873 7.003 7.105 20% 0.833 1.528 2.106 2.589 2.991 3.326 3.605 3.837 4.031 4.192 4.327 4.439 4.533 4.611 4.675 4.870 4.948 4.979 4.997 5.197 5.342 5.468 5.575 5.929 6.097 6.177 6.233 Print Done Reference Periods 1% 0.990 0.980 0.971 0.961 0.951 0.942 0.933 0.923 0.914 0.905 2% 0.980 0.961 0.942 0.924 0.906 3% 0.971 0.943 0.915 0.888 0.863 0.837 0.813 0.789 0.766 0.744 4% 0.962 0.925 0.889 0.855 0.822 0.790 0.760 0.731 0.703 0.676 12% 0.893 0.797 0.712 0.636 0.567 0.507 0.452 0.404 0.361 0.322 14% 0.877 0.769 0.675 0.592 0.519 16% 0.862 0.743 0.641 0.552 0.476 0.335 Present Value of $1 5% 6% 8% 10% 0.952 0.943 0.926 0.909 0.907 0.890 0.857 0.826 0.864 0.840 0.794 0.751 0.823 0.792 0.735 0.683 0.784 0.747 0.681 0.621 0.746 0.705 0.630 0.564 0.711 0.665 0.583 0.513 0.677 0.627 0.540 0.467 0.645 0.592 0.500 0.424 0.614 0.558 0.463 0.386 0.585 0.527 0.429 0.350 0.557 0.497 0.397 0.319 0.530 0.469 0.368 0.290 0.505 0.442 0.340 0.263 0.481 0.417 0.315 0.239 0.377 0.312 0.215 0.149 0.295 0.233 0.092 0.231 0.174 0.099 0.057 0.142 0.097 0.046 0.022 0.456 0.400 0.351 0.308 0.270 0.410 0.354 0.305 0.263 0.227 18% 20% 0.847 0.833 0.7180.694 0.609 0.579 0.516 0.482 0.437 0.402 0.370 0.314 0.279 0.266 0.233 0.225 0.194 0.191 0.162 0.162 0.135 0.137 0.112 0.116 0.093 0.099 0.078 0.084 0.065 0.037 0.016 0.004 0.001 0.001 0.888 0.871 0.853 0.837 0.820 0.804 0.788 0.773 0.758 0.743 0.673 0.610 0.552 0.453 0.896 0.887 0.879 0.870 0.861 0.722 0.701 0.681 0.661 0.642 0.554 0.478 0.412 0.307 0.650 0.625 0.601 0.577 0.555 0.456 0.375 0.308 0.208 0.183 0.287 0.237 0.257 0.208 0.229 0.182 0.205 0.160 0.140 0.104 0.073 0.059 0.038 0.033 0.020 0.0110.005 0.195 0.168 0.145 0.125 0.108 0.051 0.024 0.012 0.003 0.026 0.146 0.010 0.820 0.780 0.742 0.672 Print Done A Reference Periods 3% 1.000 2.030 ovo AWNE 1% 1.000 2.010 3.030 4.060 5.101 6.152 7.214 8.286 9.369 10.462 2% 1.000 2.020 3.060 4.122 5.204 4% 1.000 2.040 3.122 4.246 5.416 12% 1.000 2.120 3.374 4.779 6.353 5.867 6.308 7.434 8.583 9.755 10.950 8.115 10.089 12.300 14.776 17.549 Future Value of Annuity of $1 5% 6% 8% 10% 1.000 1.000 1.000 1.000 2.050 2.060 2.080 2.100 3.153 3.184 3.246 3.310 4.310 4.375 4.506 4.641 5.526 5.637 6.105 6.802 6.975 7.336 7.716 8.142 8.394 8.923 9.487 9.549 9.897 10.637 11.436 11.027 11.491 12.488 13.579 12.578 13.181 14.487 15.937 14.207 14.972 16.645 18.531 15.917 16.870 18.977 21.384 17.713 18.882 21.495 24.523 19.599 21.015 24.215 27.975 21.579 23.276 27.152 31.772 33.066 36.786 45.762 57.275 47.727 54.865 73.106 98.347 66.439 79.058 113.283 164.494 120.800 154.762 259.057 442.593 3.091 4.184 5.309 6.468 7.662 8.892 10.159 11.464 12.808 14.192 15.618 17.086 18.599 26.870 36.459 47.575 75.401 14% 16% 1.000 1.000 2.140 2.160 3.440 3.506 4.921 5.066 6.610 6.877 8.536 8.977 10.730 11.414 13.233 14.240 16.085 17.519 19.337 21.321 23.045 25.733 27.271 30.850 32.089 36.786 37.581 43.672 43.842 51.660 91.025 115.380 181.871 249.214 356.787530.312 1,342.025 2,360.757 6.633 7.898 9.214 10.583 12.006 13.486 15.026 16.627 18.292 20.024 29.778 41.646 56.085 95.026 12.169 13.412 14.680 18% 20% 1.000 1.000 2.180 2.200 3.572 3.640 5.215 5.368 7.154 7.442 9.442 9.930 12.142 12.916 15.327 16.499 19.086 20.799 23.521 25.959 28.755 32.150 34.931 39.581 42.219 48.497 50.818 59.196 60.965 72.035 146.628 186.688 342.603 471.981 790.948 1,181.882 4,163.213 7,343.858 11.567 12.683 13.809 14.947 16.097 22.019 28.243 34.785 48.886 15.974 17.293 SMO U 20.655 24.133 28.029 32.393 37.280 72.052 133.334 241.333 767.091 24.297 32.030 40.568 60.402 Print Print Done Done i Reference Future Value of $1 Periods ovo AWNE 1% 1.010 1.020 1.030 1.041 1.051 2% 1.020 1.040 1.061 1.082 1.104 1.126 1.149 1.172 1.195 1.219 3% 1.030 1.061 1.093 1.126 1.159 5% 1.050 1.103 1.158 1.216 1.276 1.340 1.407 1.477 1.551 1.629 6% 1.060 1.124 1.191 1.262 1.338 4% 1.040 1.082 1.125 1.170 1.217 1.265 1.316 1.369 1.423 1.480 1.539 1.601 1.665 1.732 1.801 12% 1.120 1.254 1.405 1.574 1.762 1.974 2.211 1.062 1.072 1.083 1.094 10% 1.100 1.210 1.331 1.464 1.611 1.772 1.949 2.144 2.358 2.594 2.853 3.138 3.452 2.476 18% 1.180 1.392 1.643 1.939 2.288 2.700 3.185 3.759 4.435 5.234 1.105 8% 1.080 1.166 1.260 1.360 1.469 1.587 1.714 1.851 1.999 2.159 2.332 2.518 2.720 2.937 3.172 4.661 6.848 10.063 21.725 1.419 1.504 1.594 1.689 1.791 1.898 2.012 2.133 2.261 2.397 1.194 1.230 1.267 1.305 1.344 1.384 1.426 1.469 1.513 1.558 1.806 2.094 2.427 3.262 14% 1.140 1.300 1.482 1.689 1.925 2.195 2.502 2.853 3.252 3.707 4.226 4.818 5.492 6.261 7.138 13.743 26.462 50.950 188.884 16% 1.160 1.346 1.561 1.811 2.100 2.436 2.826 3.278 3.803 4.411 5.117 5.936 6.886 7.988 9.266 19.461 40.874 85.850 378.721 2.773 3.106 3.479 3.896 4.363 4.887 20% 1.200 1.440 1.728 2.074 2.488 2.986 3.583 4.300 5.160 6.192 7.430 8.916 10.699 12.839 15.407 38.338 95.396 237.376 1,469.772 1.116 1.127 1.138 1.149 1.161 6.176 1.243 1.268 1.294 1.319 1.346 7.288 8.599 10.147 11.974 3.797 1.710 1.796 1.886 1.980 2.079 2.653 3.386 4.322 7.040 5.474 Sa 1.220 1.282 1.486 1.641 1.811 2.208 2.191 2.666 3.243 4.801 3.207 4.292 5.743 10.286 4.177 6.727 10.835 17.449 45.259 9.646 17.000 29.960 93.051 27.393 62.669 143.371 750.378 1.348 1.489 Print Done