Water World is considering purchasing a water park in San Antonio, Texas, for $2,100,000. The new facility will generate annual net cash inflows of $496,000 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 ARS of 10% or mo 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 future value annuity table) Read the requirements (Click the icon to view the present value table) (Click the icon to view the future value table) 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 (in years) is (Round the percentage to the nearest tenth percent.) The ARR (accounting rate of return) is (Round your answer to the nearest whole dollar) Net present value The IRR (internal rate of return) is between Requirement 2. Recommend whether the company should invest in this project Recommendation Do not invest in the new facility Invest in the new facility Time Remaining: 04 49.191 Submit test Water World is considering purchasing a wester park in San Antonio, Texas, for $2,100,000. The new facility will generate annual net cash inflows of $406,000 for ten years. Engros 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 AR of 10% or more Management unes a 12% hunde rate on investments of this nature (Click the icon to view the present value annuity table) (Oick - X (Click the icon to view the future value annuity table) Read the requirements Reference Present Value of Annalty of $1 Periods Period 1 1% 3% 5% Requirement 1. Compute the payback period, the ARR, the NPV, and the ad the tables) (Round the payback period to one decimal place.) The payback period (in years) is Period 2 Period 3 Period 4 Period Period (Round the percentage to the nearest tenth percent) Period 7 The ARR (accounting rate of return) is (Round your answer to the nearest whole dollar) Net present value The IRA (intemal rate of return) is between Requirement 2. Recommend whether the c 2589 2001 5790 5401 5417 5242 5076 4.917 4823 4355 4.111 3.509 3.605 3400 3326 6725 6.472 6230 6.002 5786 5502 5.206 4060 4.364 4.206 4009 3.312 3805 Period 7652 7325 7020 6.733 6.463 6210 5747 5335 4960 4.609 4344 8566 8162 7.706 7435 7.106 6802 6.247 5750 5.325 4946 4607 Period Period 10 9.471 6963 8530 8.111 7.722 7.300 6710 6145 5650 5216 4833 444 4078 3837 4.303 4031 4.192 Period 11 10.360 9787 9253 8.790 8306 7567 7.139 6.400 5935 5453 5009 4606 4327 Period 12 11.255 10.575 9354 9385 5363 6.354 7.536 6814 6.104 5.000 5.197 4.790 4.439 4.533 Period 13 12.134 11 345 10635 9500 9304 8853 7.904 7.103 6424 5542 5342 4910 5.468 Period 14 13.004 12 106 11.296 10.563 9809 9290 8244 7.367 6.625 6002 5.008 4611 Period 15 13.065 12.849 11.938 11 118 10.360 9712 8.559 7606 6311 6142 5575 5082 4675 4% 10% 2% 10% 14% 10% 20% 09000900 0.971 0.962 0902 0943 0.028 0.009 0.893 0.877 0.062 0347 0833 1.970 1942 1913 1.006 1800 1833 1783 1.736 1800 1647 1805 1566 2041 2004 2.829 2.775 2.723 2673 2.577 247 2402 2.322 2246 2.174 2.108 3.002 3.808 3717 3630 3546 3.485 3312 3.170 3.037 2314 2790 2000 4853 4713 4.500 4.452 4329 4212 303 3791 3.605 3433 3274 3127 12% Recommendation his pro Period 20 18 045 16.351 14.877 13.500 12.462 11.470 9818 8514 7400 6623 Period 25 22.023 19 523 17413 15822 14.004 12.783 10.675 077 7543 6873 60 Period 30 25800 22 306 19 600 17 292 15.372 13.765 11.258 9427 8055 7.003 Period 40 32 835 27 355 23.115 18 793 17 159 15 046 11.925 9.779 8244 7.105 5.929 5.303 4570 5467 4.945 177 5317 4879 6.233 5548 4967 16% and 18% 22% and 24% 20% and 22% 18% and 20% Print Done mymerase annual net cash inflows of $196,000 for ten years. Engineer seful 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% a 12% hurd to view the to view the Reference - X Future Value of Annulty of $1 compute the p the paybac (in years) Periods Period 1 1.000 Period 2 2.010 Period 3 3.030 Period 4 4.060 Period 5 5.101 1% 2% 3% 4% 5% 6% 8% 10% 12% 14% 16% 18% 20% 1.000 1.000 1.000 1,000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 2.020 2.030 2.040 2.050 2.060 2.080 2.100 2.120 2.140 2.160 2.180 1.000 2.200 closest inw 3.060 3.091 3.122 3.153 3,184 3246 3.310 3.374 3.440 3.506 3.572 3.640 4.122 4.154 4.246 4.310 age to the r Period 6 6.152 Period 7 7.214 ng rate of r 8.286 9.369 or to the nea ate of return 5.204 5.309 5.416 5.526 6.308 6.468 6.633 6.802 6.975 7.336 7.716 7.434 7.662 7.898 8.142 8.394 8.923 9.487 10.089 Period 8 8.583 8.892 9.214 9.549 9.897 10.637 11.436 12.300 Period 9 9.755 10.159 10.583 11.027 11.491 12.485 13.579 14.776 Period 10 10.462 10.950 11.464 12006 12.578 13.181 14.487 15.937 17.549 Period 11 11.567 12.169 12.806 13.486 14.207 14.972 16.645 18.531 20 655 Period 12 12.683 13.412 14.192 15.026 15.917 16.870 18.977 21.384 24.133 Period 13 13.809 14.680 15.618 16.627 17.713 18.882 21.495 24 523 Period 14. Period 15 4.375 4.506 5.637 5.867 4.641 4.779 4.921 5.066 5215 5.368 6.105 6353 6.610 6.877 7.154 7.442 8.115 8.536 8.977 9.442 9.930 10.730 11.414 12.142 12.916 13.233 14.240 15.327 16.499 16.085 17.519 19.086 20.799 19.337 21.321 23.521 25.909 28.029 14.947 15.974 17.086 18.292 19.599 21.015 24.215 27.975 32.393 16.097 17.293 18.599 20.024 21.579 23.276 27.152 31.772 37.280 23.045 27.271 32.089 36.786 25.733 28.755 32.150 30.850 34.931 39.581 42.219 48.497 37.581 43.672 50.515 59.196 43.842 51.660 60.965 72.035 ecommend 91.025 115.380 146.628 156 658 Period 20 22.019 24.297 26.870 29.778 33.066 36.786 45.762 57.275 72.052 249.214 342.603 471.981 Period 25 28.243 32.030 36.459 41.646 47.727 54.865 73.106 98.347 133.334 181.871 790.948 1,151.852 Period 30 34.785 40.568 47.575 56.085 66.439 79.058 113.283 164.494 241.333 356.787 530.312 Period 40 48.886 60.402 75.401 95.025 120.800 154.762 259 057 442.593 767.091 1,342.025 2,360.757 4.163.213 7.343.858 Print Done the presen the future : Reference Present Value of $1 - X 4 or more 0.857 0.826 0.797 0.840 0.794 0.751 0.712 0.675 0.641 0.609 0.579 0.792 0.735 0.683 0.636 0.592 0.552 0.516 0.452 0.747 0.651 0.621 0.567 0.519 0.476 0.437 0.402 Periods 1% 2% 3% 4% 5% 6% 8% 10% 12% 14% 16% 18% 20% Period 1 0.990 0.980 0.971 0.962 0.952 he payback back period 0.943 0.926 0.909 0.893 0.877 0.862 0847 0.833 Period 2 0.980 0.961 0.943 0.925 0.907 0.890 0.769 0.743 0.715 0.004 s) is Period 3 0.971 Period 4 0.961 Period 5 0.951 0.942 0.915 0.889 0.864 0.924 0.888 0.855 e nearest t Period 6 Period 7 return) is 0.942 0.933 Period 8 0.923 Period 9 0.914 searest who Period 10 0.905 Period 11 0.896 0.804 0.722 0.650 0.585 0.527 Period 12 0.887 0.788 0.701 0.625 0.557 0.497 m) is betw and whether 0.823 0.906 0.863 0.822 0.764 0.888 0.837 0.790 0.746 0.871 0.813 0.760 0.711 0.853 0.789 0.731 0.677 0.837 0.766 0.703 0.645 0.820 0.744 0.676 0.614 0.705 0.630 0.564 0.507 0.456 0.410 0.370 0.335 0.665 0.503 0.513 0.452 0.400 0.354 0.314 0.279 0.627 0.540 0.467 0.404 0.351 0.305 0.266 0.233 0.592 0.500 0.424 0.361 0.308 0.263 0.225 0.194 0.558 0.463 0.386 0.322 0.270 0.227 0.191 0.162 0.429 0.350 0.287 0.237 0.195 0.182 0.135 0.397 0.319 0.257 0.208 0.168 0.137 0.112 Period 13 0.879 0.773 0.681 0.601 0.530 0.469 0.368 0.290 0.229 0.182 0.145 0.116 0.093) Period 14 0.870 0.758 0.661 0.577 0.505 0.442 0.340 0.263 0.205 0.160 0.125 0.099 0.078 Period 15 0.861 0.743 0.642 0.555 0.481 0.417 0.315 0.239 0.183 0.140 0.108 0.084 0.065 Period 20 0.820 0.673 0.554 0.456 0.377 0.312 0.215 0.149 0.104 0.073 0.051 0.037 0.026 Period 25 0.780 0.610 0.478 0.375 0.295 0.233 0.146 0.092 0.059 0.035 0.024 0.016 0.010 0.174 0.099 0.057 0.033 0.020 0.012 0.007 0.004 Period 30 0.742 0.552 0.412 0.308 0.231 Period 40 0.672 0.453 0.307 0.208 0.142 0.097 0.046 0.022 0.011 0.005 0.003 0.001 0.001 Donn with the closest interest rate shown in n to view the fu Reference Future Value of $1 and an ARR an X Periods 1% 2% 3% 4% 5% 6% 8% 10% 12% 14% 18% 18% 20% Period 1 1.010 1.020 compute the pay 1.030 1.040 1.050 1.060 1.080 1.100 1.120 1.140 the payback p Period 2 1.160 1.100- 1.200 1.020 1.040 1.061 1.082 1.103 1.124 1.166 1.210 1.254 1.300 1.345 1.392 1.440 he close Period 3 1.030 1.061 1.093 1.125 1.158 1.191 1.260 1.331 1.405 1.482 1.561 1.643 1.728 Period 4 1.041 1.082 1.126 (in years) is 1.170 1216 1.262 1.360 1,464 1.574 1.609 1811 1.939 2.074 Period 5 1.051 1.104 1.159 1.217 1.276 1.338 1.469 1.611 1.762 1.925 2.100 2.288 2.488 ge to the nea Period 6 1,062 1.126 1.194 1.265 1.340 Period 7 1.072 1.149 1.230 g rate of retu Period 8 1.083 1.172 1.267 Period 9 1.094 1.195 to the neares Period 10 1.105 1.219 1.344 1.419 1.587 1.772 1.974 1.316 1.407 1.504 1.714 1.949 2.211 2.502 1.369 1477 1.504 1851 1.305 1.423 1.551 1.480 1.629 2.196 2.436 2.700 2.906 2.826 3.185 3.583 2.144 2.476 2.853 3.278 3.759 4.300 Period 11 1.116 1.243 1.384 Period 12 1.127 1.268 Period 13 e of return) is Period 14 commend wh Period 15 Period 20 Period 25 Period 30 1.220 1.282 1.348 4.661 Period 40 1.609 1.999 1.791 2.159 1.539 1.710 1.890 2.332 2.853 1.426 1.601 1.796 2.012 2.518 3.138 3.896 4.818 1.138 1.294 1.469 1.665 1.886 2.133 2.720 3.452 4.363 5.492 6.886 1.149 1,319 1.513 1.732 1.960 2.261 2.937 3.797 4.887 6.261 7.985 1.161 1.346 1.558 1.801 2.079 2.397 3.172 4.177 5.474 7.138 9.266 11.974 1.486 1.806 2.191 2.653 3.207 6.727 9.646 13.743 19.461 27.393 1.641 2.094 2.666 3.386 4.292 6.548 10.835 17.000 26.462 40.574 62.669 1.811 2.427 3.243 4.322 5.743 10.063 17.449 29.960 50.950 85.850 143.371 237.376 1.489 2.208 3.262 4.801 7.040 10.286 21.725 45.259 93.051 158.854 378.721 750.378 1,469.772 2.358 2.773 3.252 3.803 4.435 5.160 2.594 3.106 3.707 4411 5.234 6.192 3.479 4.226 5.117 6.176 7.430 5.936 7.288 8.916 8.599 10.699 10.147 12.839 15.407 38.338 95.396 Print Done ayback period, the ADD the NOV and the animale IDD at this investment fue period to one de Requirements arest tenth perce sum) is est whole dollar.) 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. s between ether the compa Print Done ng, answer with the closest im - X