What is the ARR, NPV, IRR, and profitability index?

Splash Planet is considering purchasing a water park in Atlanta, Georgia, for $1,820,000. The new facility will generate annual net cash inflows of $460,000 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 Ordinary Annuity of $1 table.) (Click the icon to view Future Value of $1 table.) Read the requirements. 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.) Amount invested Expected annual net cash inflow Payback 4.0 years 1,820,000 460,000 Next, determine the formula and calculate the accounting rate of return (ARR). (Round the percentage to the nearest tenth percent, XX%. ) Average annual operating income Average amount invested ARR % iReference Present Value of $1 4 %5%| 6%|7% 8%| 9% | 10%| 12%|14%| 15% Reference Future Value of $1 1% 23% 4%5%6% 7%8%9%10% 12 % 3% 16% 185 Periods 1% Future Value of Ordinary Annuity of $1 Present Value of Ordinary Annuity of $1 Periods 1% 2% 3%4% 5%6% 7% 8% 9%| 10% 12%14% 15% 16%| 18%| 20% Periods 1%2% 3%4%59%6%7%8%9% 10%12% 0,608 0372 | 0228 0141 | 00870054 0034 0021 0013 0009 0003 0.001 0001 0001 74 36 1174 289.0o 700: 40 48.8960.40 75.40 95.03 120.8 154.8 199.6 259.1 337.9 4426 767.1 1,342 1,779 50 64.46 84581128 1527 209.3 2903 O655738 815 1 1164 2400 4 995 7.218 Print Done Print Done Check Answer 38988 88588 gu 8 8883 5 SS5 N6 O7892 m3 8883 8S883 S 85 82888 88585 1111 112 22 23 334 4556 6Nooo0 921 2 9E 21 :mmus ESS Sm S3mS3 2345 NE39 8838 8359 8882 99 88859 825 R= 8393 SI65 8 SS 55858 8588 283%8 633 s s 2345 6N829a583 3583% 335% 8 N5 88298 8938 8388 8888 cO7892N3 g 298 &883385885 81 45567 NNoeo 99 22 9 E33 Nod8 22933 E9S99 23 5 21 56770 gosE E P293 229 7 2 ON N S