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Water World is considering purchasing a waterpark in Charleston, South Carolina, or $2,100,000. The new city wil generate anual net cash intous of $520,000 for

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Water World is considering purchasing a waterpark in Charleston, South Carolina, or $2,100,000. The new city wil generate anual net cash intous of $520,000 for eight years, Engineers estimate that the facility will remain useful for eight years and have no residual value the company sestine depreciation is owners want pytakin less than ive years and an ARR of 10% or more Management uses a 12% hurdle rate on investments of this mature late icon to view the present value annuity b) the con lo view the present value table) Click the icon to view the value annulyable) Click the icon to view the value table) Requirement 1. Compute the paytade period, the ARR the NPV and the approximate RR of this investment of you use the tables to compute the IRR answer with the closest interest rate shown in the bles) Cound the payback period to one demplace) The payback periodis years (Hound the percentage to the nearestat percent) The ARR (accounting rate et remis DX Round your answer to the nearest we do) Net present values The Refreturn is between Requirement. Recommend whether the company should invest in project Recommendation En uber in the ed add the continue to the next ston 1:59 acer Reference 2% 1 6 7 8 Present Value of Annuity of $1 Periods 1% 3% 4% 5% 6% 8% 10% 12% 14% 16% 18% 20% 0.990 0.980 0.971 0.9620.9520.943 0.926 0.909 0.893 0.877 0.862 0.847 0.833 2 1.970 1.942 1.913 1.886 1.859 1.833 1.783 1.736 1.6901.647 1.605 1.566 1.528 3 2.941 2884 2.829 2.775 2.723 2.673 2.577 2487 2.402 2.322 2246 2.174 2.106 4 3.902 3.808 3.717 3.630 3.546 3.465 3.312 3.170 3.037 2.914 2.798 2.690 2.589 5 4.853 4.713 4.580 4.452 4.329 4.212 3.993 3.791 3.605 3.433 3.274 3.127 2.991 5.795 5.601 5.417 5.242 5.076 | 4.917 4.623 4.356 4.111 3.889 3.685 3.498 3.326 6.728 6.472 6.230 6.002 5.786 5.582 5.206 4.8684.564 4288 4.039 3.812 3.605 7.652 7.325 7.020 6.733 6.463 6.210 5.747 5.335 4.9684.639 4.344 4.078 3.837 9 8.566 8.162 7.786 7.435 7.1086802 6.247 5.759 5.328 4.946 4.607 4.303 4.031 10 9.471 8.983 8.530 8.111 7.722 7.360 6.710 6.145 5.650 5.216 4.833 4.494 4.192 11 10.3689.7879.2538.760 8.3067.887 7.139 6.495 5.938 5.453 5.029 4.656 4.327 12 11.255 10.575 9.954 9.3858.863 8.3847536 6.814 6.194 5.660 5.197 4.793 4.439 13 12.134 11.348 10.6359.986 9.3948.853 7.904 7.103 6.424 5.842 5.342 4.910 4533 14 13.004 12.106 11.296 10.563 9.899 9.295 8.244 7.367 | 6.628 6.002 5.468 5.008 4611 15 13.865 12.849 11.938 11.118 10.38097128.5597.606 6.811 6.142 5.575 5.092 4.675 20 18.046 16.351 14.877 13.590 12.462 11.470 9.818 8514 7.469 6623 5.929 5350 4.870 25 22.02319,523 17.413 15.622 14.094 12.783 10.675 9.077 7843 6.873 6.097 5.467 30 25.80822.39619.600 17.292 15.372 13.765 11.2589.427 8.0557003 6.177 5.517 4979 40 32.835 27.355 23.115 19.790 17.159 15.046 11.925 9.779 8.244 7.105 6.233 5.548 4 997 invest Print Done the nel acer This Question: 10 pts 29 of 29 (0 complete This Test: 100 pts poss Water World is considering purchasing a waterpark in Charleston, South Carolina, for 100.000 The new bity will generate annual batch infows of $520.000 toreight years, Engineers estimate that the tally will remain use for eight years and have no residual value. The company uses straight line depreciation is owners want paybain less than years and ARR of 10% or more Management uses a 12% hurdiral on investments of this are Click the icon to ew the present value any Cick the lowest table) Click the icon to wow the value annuity table) Cick the icono ewere able) Read the recents Requirement 1. Compute the payback period, the ARR, the NPV and the approximal Rahis vestment if you use the tables to compute the RR answer with the closest interest rate shown in the tables) Round the payback pened to one decimal) The payback period is years Round the percentage to the nearestat percent The ARR counting the retums Round your answer to the nearest whole Net present value The RR nemala of return is beren Requirement 2. Recommend whether the company should invest in this project Recommendation Enter any number in the edit fields and then come to the next question 2:22 acer c 0 0 02

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