West World considering purchasing a water park in Atlanta, Georgia, for $1,880,000. The new facility will generate annual net cash inflows of $475,000 for eight years. Engineers estimate that the facility will remain useful for eight years and have no residual value. The company is a straight line depreciation, and its stockholders demand an annual return at 12% on investment of this nature. Requirement 1. compute the payback, the ARR, the NPV, the IRR, and the probability index of this investment. Requirement 2. Recommend one of the companies should invest in this project.

Requirement 1. Compute the payback, the ARR, the NPV, the IRR, and the profitability index of this investment First, determine the formula and calculate payback. (Round your answer to one decimal place, X.X.) Payback years Next, determine the formula and calculate the accounting rate of return (ARR) (Round the percentage to the nearest tenth percent, X.X%.) ARR % Calculate the net present value (NPV). (Enter any factor amounts to three decimal places, X.XXX.) Net Cash Present Annuity PV Factor (i=12%, n=8) Years Inflow Value 1-8 Present value of annuity 0 Investment Net present value of the investment The IRR (internal rate of return) is between Finally, determine the formula and calculate the profitability index. (Round your answer to two decimal places, XXX.) Profitability index Choose from any list or enter any number in the input fields and then ntinue lo next question theo - old an an ER Present Value of $1 Periods 1% 2% 3% 4% 5% 6% 7% 8% 9% 10% 12% 14% 15% 16% 18% 20% Period 1 0.990 0 980 0,971 0.962 0.952 0.9430.9350 926 0.917 0.909089308770 870 0.862 0.8470.833 Period 2 0.980 0961 0.943 0.925 0.9070.890 0.873 0857 08420 826 07970769 0.756 0743 0.7180.694 Period 3 0.971 0 942 0.915 0.889 0.8640 840 0.816 0.794 0.772 0751071206750658 06410.609 0.579 Period 4 0.961 0.9240888 0.855 08230 792 0.763 0.735 0708 0.683 0.63605920572 0.552 0.516 0482 Period 5 0 951 0 906 0 863 0.822 0.784 07470713 0.681 0.650 0.6210.567 0519 0.497047604370402 Period 6 0942 0 888 0.837 0.790 0.746 0.705 0666 0.630 0596 0.5640507 0456 0432 0410 03700335 Period 7 0.933 0871 0813 0.760 0.711 0.665 0.623 0583 0547 0513 0.452 0.4000376 0354 03140 279 Period 8 09230 853 0.789 0.731 0677062705820540 0 502 0467040403510327 0.305 0 266 0233 Period 9 0914 0 837 0.766 0703 0.645 0.592 0.5440.500 0.460 0.4240361 0308 02840263 0225 0.194 Period 10 0905 0.820 0744 0.67606140558 05080463 0422 0386 0322 0 270 0247 0.2270191 0.162 Period 11 0896 08040722 06500585 0.527 0475 0.429 0388 03500 287 0237 0215 0.1950 1620 135 Period 12 0887 0788 0.701 0.625 0557 0.4970444 0.397 0356 0319 0 2570 208 0 1870 1680.1370 112 Period 13 0879 0.773 06810 601 0530 0.48904150368 0326 0 290 0.229 0.1820 163 0.145 0.116 0.093 Porlod 14 0.870 0.7580861 0.577 0.505 0442 03880 340 0299 0263 0205 0 160 0.141 0125 0.099 0.078 Period 15 0861 0.743 0842 0555 0.481 0417 0362 0315 0 275 0239 0183 0 140 0.123 0.108 0.0840085 Period 16 0.853 0728 0.623 0534 0458 0.394 0339 0292 0252 0218 0 1630 1230 107 009300710054 Period 17 844 071406050513 0438 0371 0317 0270 0231 0.198 0.146 0108 0.093008000600045 Period 18 0.806 0700 0587 0.494 0.416 0 350 0296 0250 0212 0 180 0.130 0.095 0.081 0.069 0.051 0038 Period 19 0878 0 686 0570 0.475 039 0331 0277 0232 0.194 0 164 0.116 0.083 0.070 0.000 0.043 0.031 Period 20 000873 05646456 0377 0312 0258 0215 0.178 149 0 1040073 0061 0051 0.037 0026 Period 21 0811 0880052 0439 0369 0284 0242 0199 0.1640135 0093 0064 005300440031 0022 Period 22 08 OBAT 0502 04 0342 0278 076 0184 0.15001230083 0056 0048 0.038 0.028 0.018 Porid 23 0750634 0507 006 0328 0282 0251 0.170 0.132 0.112 0074 0049 0.040 0.033 0.002 0015 Period 24 786 on 612 0.390 0310 0247 0.1976 155 0.125 0.102 0086 0043 0.035 0.028 0019 0.013 Paris 25 T0650 0478 0.375 025 023 184 0.146 0.116 0092 0050 0038 0.000 0.024 0018 0010 Paris 76 9712 0598 44 0.385 0681 0172 0135 6106 0040083 0988 9026 0021 00140609 Puric 974 096 0347 022 0281 0181 0.925 0000700047 002800280018 0.0110007 Paris 3 079705706 639 0236 0.156 150 0.116 00600890012 000 000 0018 0.0100.000 Perie 976 50426 020 0186 0541 0907 0.02 0.098 0.50 0002 0017 0014 00 0.005 . Print Done > y Wier orecl tab 9.) 4% 9% 14% 15% ount -facto Net Intl Present Value of $1 Periods 1% 2% 3% 5% 6% 7% 8% 10% 12% 16% 18% 20% Period 1 0.990 0 980 0971 0.962 0.952 0.943 0.935 0.926 0.917 0.9090893 0877 0.870 0.862 0847 0833 Period 2 0.980 0961 0.9430925 0907 0890 0.873 0857 0.842 0.826 0.797 0769 0.756 0.7430718 0694 Period 3 0.971 0.942 0915 0889 08640.840 0.816 0.794 0772 0.751 0.712 0.675 0.658 0.641 0.609 0.579 Period 4 0.961 0.924 0.888 0855 0823 0.792 0.763 0.735 0.708 06830636 0.592 0.5720552 0516 0.482 Period 5 0.951 0.906 0 863 0.822 0.784 0747 0713 0.681 0.650 0.621 0.567 0.519 0.497 0.476 0.437 0.402 Period 6 0.942 0888 0.837 0790 0 746 0.705 0 666 0.630 0 596 0.564 0.507 0.456 0.432 041003700335 Period 7 0.933 0871 0813 0.760 0.711 0.665 0.623 05830.5470 513 0.452 0.400 0376 0354 0.314 0.279 Period 8 0.923 0.853 0.7890731 0.677 0.627 0.582 0540 0502 0.467 0.404 0351 0327 0.305 0.266 0233 Period 9 0914 0.837 0.766 0.7030645 0 592 0544 0.500 0.460 04240361 0.308 0 2840 263 0225 0.194 Period 10 0.905 0820 0.744 0.676 0.614 0.558 0.508 0.46304220 386 03220 2700 2470 227 0.19 0.162 Period 11 0.896 0.804 0.722 0.65005850527 0475 0429 03880 350 0.287 0.237 0.215 0.1950 162 0.135 Period 12 0.887 0.788 0.701 0.625 0.5570.497 0.444 0397 0.356 0.319 0.257 0.208 0.187 0.1680.1370.112 Period 13 0 879 0.773 0.681 0.601 0.530 0.469 0.415 0368 0.326 0 290 0.229 0.182 0163 0.145 0.116 0093 Period 14 08700.758 0 661 05770.505 0.442 0.388 0 3400 2990 263 0 205 0.1600.141 0.125 0.099 0.078 Period 15 0.861 0.743 0.642 05550481 0.41703620315 02750239 0.1830 140 0.123 0.108 0.084 0.065 Period 16 0.853 0.7280.623 0534 0.458 0.3940339 0.292 0252 0218 0.163 0.123 0.1070093 0.0710054 Period 17 0844 0.7140.605 0.513 0.436 0.371 0.317 0.2700 2310.1980146 0108 0093008000600045 Period 18 0.836 0.7000.587 0494041603500 296 0.250 0 2120 180 0.130 0095 0.081 0.069 0.0510038 Period 19 0828 0 686 0.570 0.475 0.3960331 0277 0232 0.1940.1640 1160083 0.070006000430031 Period 20 0.820 0.673 0.5540456 0377 0.3120 258 0215 0.1780 1490.1040073 0.061 00510 037 0.026 Period 21 0811 0.660 0538 0.439 0.359 0 294 0 2420 199 0.164 0.135 0093 0.0640053 0044 0.031 0.022 Period 22 0803 0.647 0.522 0422 0.3420278 0 226 0184 0.150 0.123 0083 0056 0.046 0.038 00260018 Period 23 0795 0.634 0.507 0.406 0326 0 262 0211 0.170 0.138 0.112 0.0740049 0.040 0.033 0.0220015 Period 24 0.788 0.622 04920 3900 310 0.247 0 1970.158 0.126 0.1020.066 0043 0.035 0.028 0.019 0013 Period 25 0780 0.6100478 0375 0.295 0 233 0.184 0.146 0.116 0.092 0.059 0.038 0.030 0.0240016 0.010 Period 26 0.772 0598 0.464 0.361 0281 0220 0.172 0.135 0.106 0.0840053 0.033 0.025 0.021 0.014 0.009 Period 27 0.764 0586 0.45003470268 0207 0.161 0.125 0.098 0.076 0.047 0.029 0023 0.018 0.0110.007 Period 28 0.757 0.57404370333 0255 0.1960.1500116 0090 0.0690042 0.026 0020 0.01600100006 Period 29 0.7490563 0.4240321 0243 0.185 0.141 0.107 00820063 0037 0.022 0.017 0.014 0.008 0005 ul. profita anys! The ARR a est in ALE . Print Done the inpl 21 of 22 (0 complete) Reference X nta, GA and a nain use 16% ante of noun AL Present Value of Ordinary Annuity of S1 Periods 1% 2% 3% 4% 5% 6% 7% 8% 9% 10% 12% 14% 15% 18% 20% Period 1 0.990 0.980 0971 0.962 09520,943 0935 0926 0917 0.909 0893 0877 0.870 0862 08470833 Period 2 1970 1942 1913 1886 1859 1833 1808 1783 1759 1736 1690 1647 1.6261.60515661528 Period 3 2941 288428292775 2723 2673 2624 2577 2531 2487 2402 2322 2283 2246 2174 2106 Period 4 3.902 3.808 3717 3.6303546 3.465338733123 240 3 170 3037 291028552798 2690 2 589 Period 5 4853 4713 45804452 43294212 4100 3.9933.890 3.7913605 3.43 33523274 3.127 2.991 Period 6 5.795 5.601 5417 5242 5076491747674623448643554 111 3.8893 78436853498 3328 Period 7 6.7286472 6230 6.0025786 5582 5389 5.20650334 8684564 4288 416040393812 3605 Period 8 7.652 7.325 7020 6 733 6.463 6210 597157475535 5335496846394487 434440783837 Period 9 85668.162778674357 108 6 802 6515 6 247 5.995 5.759 5328494647724607 4303 4031 Period 10 9.47189838530 8.111 7722736070246710 6.418 614556505216 5019 48334494192 Period 11 103689.78792538.760830678877499 1396 805 6495 5938 5453 5234 5029 46564327 Period 12 11 255 10.575 9.9549.385 88638384794375967 161 6814 6.194 56605421519747934499 Period 13 12.134 11 348 106359.9869394 88538358790474877103642458425583 534249104533 Period 14 13.004 12 106 1129610563 9.8999295874582447 786 7.36766286002 57245468 50084611 Period 15 13.865 12.849 11.938 11.118 10 380 9.712 9.108 8.5598.0617606 6811 6.142 5.8475.575 5092 4675 Period 16 14718 13.578 12 561 11652 10 838 10 106) 94478851 8.313782469746265 59545669 5 1624730 Period 17 15562 14.282 13.166 12 166 11 274 10477 9763 91228 544 8022 71206373 6.047 57495 222 4775 Period 18 16398 14.992 13.754 12659 11 690 10 828 10.059 9.3728.756 8 2017 25064676 128 5818 5 273 4812 Period 19 17226 15678 14 32413.13412085 11.15 10.336 9.6048.950 8.365 736665506.198587753164844 Period 20 18.046 16 351 14 677 13 590 12462 11470 10.504 9.818 9.129 85147469 6623 6.250 5.92953534870 Period 21 18 857 17 01115415 14 029 12 821 11764 10.836 10.0179292 864975626687 6.3125.973 5384 4891 Poriod 22 19.660 17658 1593714451 13 163 1201211051 10 2019 442 87727645 6743 6.359 60115410 4900 Period 23 20456 18 292 16 44414857 13 489 12 303 11 272 10371 95808 883 7718 6792 6.399 5.044 5432 4925 Period 24 21 24318914 16.936 15 247 13.799 12 550 11.459 10 520 9 70789857.784 683564346.073 5451 4937 Period 25 22 023 19 523 17.413 15.522 14 094 12783 11.65410,675 98239.0777843687364646.097 5.467 4948 Period 26 22795 20 121 17 87715.983 14 375 13.003) 11 826 10.8109.929 916178966906 64916.118 5480 4956 Period 27 23 500 2070718 327 16 330 14643 13211 11.987 10:93510027 92377943 6935 65146.136 5492 4964 Period 28 24 316212811876416 653 14 898 13 406 12 13711051 10.116 9.3077981 696165346.152 55024970 Period 29 25.066 2184419.188 16 98415 141 13 591 12 278 11 158 10.19893708022698365516.166 55104975 Lalalalalala nena index d invec TOLER IRRA project Print Done Telds are COM Future Value of Ordinary Annuity of $1 Periods Period 1 Period 2 Period 3 Period 4 Period 5 R Period 6 Period 7 Period 8 Period 9 Period 10 de Period 11 Period 12 Period 13 Period 14 Period 15 n 1% 2% 3% 4% 5% 6% 7% 8% 9% 10% 12% 14% 15% 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 2.010 2020 2030 2040 2050 2060 2.070 2.080 2090 2100 2.1202140 2.150 3.0303.060 3.091 3.122 3.153 3.1843.215 3.246 3.278 3.310 3.3743440 3.473 4.0604.122 4.184 4.246 4.3104 375 4.440 4.506 4573 4.641 4.7794.921 4.993 5.101 5.204 5.309 5.416 5526 5.637 5.7515.867 5985 6.1056353 6610 6.742 6.152 6.308 6.468 6.633 6.8026.9757.153 7336 7523 7716 8.115 8.536 8.754 7.214 7.4347.6627.898 8.142 8.394 8.654 8.9239.2009.487 10.09 10.73 | 11.07 8.286 8.583 8.89292149.549 9.897 10.260 10.64 11.03 11.44 12.30 13.23 13.73 9.369 9.755 10.16 10.58 11.03 11.49 11.98 12.49 13.02 13.5814.78 16.09 16.79 10.46 10.95 11.46 12.01 12.58 13.18 13.82 14.49 15 19 15.94 1755 19.34 20 30 11.57 12.17 12.81 13.49 14.21 14.97 15.78 16.65 17.56 18.53 2065 23.04 24 35 12.68 13.41 14.19 15.03 15.92 16.87 17.8918.98 20.14 2138 24.13 27 27 29.00 13.81 14.68 15.62 16.63 17.71 18.88 20.14 21.50 22.95 24.52 28.03 3209 34 35 14.95 1597 17.09 18.2919.60 21.02 22.55 24 21 26.02 27 98 3239 3758 40 50 16.10 17 29 18.60 20.02 21.58 2328 25.13 27 15 29.363177 37 28 43 84 47.58 17 26 18 64 20.16 21.82 23.66 25.67 27 89 30 32 33.00 35.95 42.75 50.98 55.72 18.43 20.01 21.76 23.70 25.84 28.21 30.84 33.75 36.97 40.54 48.88 59.12 65.08 19.61 21.41 23.41 25.65 28.13 30.91 34.00 37.45 41,30 45 60 5575 68 39 75.84 20.81 22.84 25.12 27.67 30.54 33.76 37 38 41.45 46.02 51.16 63.4478.9788.21 22.02 24 30 26.87 29.7833.07 36.79 4100 45.76 51 16 57.28 72.05 9102 102.4 23 24 25.7828.68 31.9735.72 39.9944.87 50.42 56.76 64.00 81.70 104 8 118.8 24.47 27 30 30.5434.25 38.51 43.39 49.01 55.46 62.87 71.40 92.50 120.4 137.6 25.72 28.85 32.45 36.62 41.4347.00 53.44 60.89 69.5379.54 1046 138 3 159.3 26.97 30.42 34.43 39.08 44.50 50 82 58.18 66.76 76.7988 50 118,2 158.71842 28 24 32 03 36.46 41.65 47.7354 86 63.25 73.11 84 70 9835 1333 181.92128 29.53 33.67 38.55 4431 51.11 59.16 68.68 79.95 93.32 109 2150 3 2083 245.7 30.82 35 34 40.71 47 08 54.6763.7174.48 87 35 102.7 1211 169 4 238.5 283.6 32.13 3705 42.93 49.97 58.40 68.53 80 70 95.34 113.0 134 2 190.7 2729 3271 33.45 38.79 45.22 52 97 62.32 73.64 87.35 1040 12411486 2146 3121 3772 Period 16 Period 17 Period 18 Period 19 Period 20 ya Period 21 Period 22 Period 23 Period 24 Period 25 orol Period 26 Period 27 Period 28 Period 29 LE A. CA 47 th 100 04 Conn