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Water Nation is considering purchasing a water park in Atlanta, Georgia, for $2.050,000. The new facility will generate annual net cash inflows of $520,000 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 its owners want payback in less than five years and an ARR of 10% or more Management uses a 14% hurdle rate on investments of this nature (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 Requirements - X this investment. (If you use the tables to Ick period to one decimal place.) 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 The IRR (internal rate of return) is between Requirement 2. Recommend whether the company should invest in this project Enter any number in the edit fields and then continue to the next question BH e a Water Nation is considering purchasing a water park in Atlanta, Georgia, for $2,050,000. The new facility will generate annual net cash infl value. The company uses straight-line depreciation. Its owners want payback in less than five years and an ARR of 10% or more Manager (Click the icon to view the present value annuity table) (Click the icon to view the present value table.) i Reference - X R RI the tables to com Periods T 1% 0.990 1.970 2.941 3.902 4.853 2 3 4 5 3% 0.971 1.913 2.829 3.717 4.580 2% 0.980 1.942 2.884 3.808 4.713 5.601 8.472 7.325 8.162 8.983 4% 0.962 1.886 2.775 3.630 4.452 Present Value of Annuity of $1 5% 6% 8% 10% 0.952 0.943 0.926 0.909 1.859 1.833 1.783 1.736 2.723 2.673 2577 2.487 3546 3.465 3.312 3.170 4.329 4.212 3.993 3.791 5.076 4 917 4.623 4.355 5.786 5.582 5 206 4.868 6.463 6.210 5.747 5.335 7 108 6.802 6.247 5.759 7.722 7.360 6.710 6.145 12% 0.893 1.690 2.402 3.037 3.605 14% 0.877 1.647 2322 2914 3.433 16% 0.862 1.605 2.246 2.798 3.274 G 18% 0.847 1.566 2.174 2.690 3.127 20% 0833 1.528 2.106 2589 2.991 T 6 7 8 5.795 6.728 7.652 8.566 9.471 5.417 6230 7.020 7.786 8.530 5242 6.002 6.733 7.435 8.111 3.498 3.812 4.078 4303 4.494 3326 3.605 3.837 4,031 4.192 N 9 10 T 11 12 13 14 15 R 4 111 3.889 3.685 4.5644 288 4.039 4.968 4.639 4.344 5328 4.946 4.607 5.650 5 216 4.833 5.938 5.4535.029 6.194 5.660 5.197 6.424 5.842 5.342 6.628 6.002 5.468 6811 6.142 5.575 7.469 6.623 5.929 7 843 6 873 6.097 8.055 7003 8.177 8.244 7 105 6.233 10.368 9.787 9.253 8.760 8.306 7.887 7.139 6.495 11 255 10.575 9.954 9385 8 883 8384 7536 6.814 12.134 11.348 10.635 9.986 9.394 8853 7.904 7 103 13.004 12.106 11.296 10.563 9899 9 295 8.244 7367 13.865 12.849 11.938 11.118 10.380 9.712 8.559 7.606 18.046 16.351 14.877 13.590 12 462 11.470 9.818 8.514 22.023 19.523 17.413 15 62214 094 12 783 10.675 9.077 25 808 22 396 19.600 17 292 15 372 13.765 11 258 9.427 32 835 27 355 23.115 19.793 17 159 15 046 11.925 9.779 R 4.656 4.793 4.910 5.008 5.092 5353 5.467 5.517 5548 4.327 4.439 4.533 4.611 4.675 20 25 30 40 4.870 4.948 4.979 4.997 EN Print Done Type here to search a Water Nation is considering purchasing a water park in Atlanta, Georgia, for $2,050,000. The new facility will generate annual net cas! value. The company uses straight-line depreciation. Its owners want payback in less than five years and an ARR of 10% or more. Man (Click the icon to view the present value annuity table) Click the icon to view the present value table.) -X 0 Reference Re Re Present Value of $1 he tables to Periods 3% 8% TH 1 (RI 2 3 4 5 1% 0.990 0.980 0.971 0.951 0.951 2% 0.980 0.961 0.942 0.924 0.906 0.888 0 871 0.853 0.837 0.820 5% 0.952 0.907 0.864 0.823 0.784 4% 0.971 0.962 0.943 0.925 0.915 0.889 0.8880855 0.863 0.822 0.837 0.790 0813 0.760 0.789 0.731 0.766 0.703 0.744 0.676 6% 0.943 0.890 0.840 0.792 0.747 0926 0.857 0.794 0.735 0.681 10% 12% 09090 893 0.826 0.797 0.751 0.712 0.683 0.636 0.621 0.587 TH 18% 0.847 0.718 0.609 0.516 0437 20% 0.833 0.694 0 579 0.482 0402 0.335 0.279 0233 0.194 0.162 6 (R 7 00 0.746 0.711 0.677 0.645 0.614 0.705 0.665 0.627 0.592 0.558 0630 0 583 0540 0.500 0.463 0.370 0.314 0266 0225 0191 NO 9 10 14% 16% 0.877 0.952 0.769 0.743 0.675 0.641 0.592 0.552 0.519 0.476 0.458 0.410 0.400 0.354 0 351 0305 0.308 0.263 0.270 0.227 0.237 0.195 0208 0.168 0.182 0.145 0.160 0.125 0 140 0.108 0.073 0.051 0.038 0.024 0.020 0.012 O 005 0.003 0.942 0933 0.923 0.914 0.905 0896 0.887 0.879 0.870 0.861 TH 0.564 0507 0.513 0.452 0.467 0404 0.424 0.381 0.386 0.322 0.350 0287 0 3190 257 0 290 0229 0.263 0 205 0.239 0.183 RC 11 12 13 14 15 0.804 0.788 0773 0.758 0.743 0.722 0.701 0.681 0.661 0.642 0.650 0.625 0 601 0.577 0.555 0.585 0557 0.530 0505 0.481 0.527 0.497 0.469 0.442 0.417 0.429 0.397 0.368 0.340 0.315 Re 0.162 0.135 0.137 0.112 0.116 0.093 0.099 0.078 0084 0.065 0.037 0.025 0.016 0010 0.007 0.004 0.001 0.001 0.456 20 25 30 40 0.820 0.780 0.742 0.672 0.673 0.610 0.552 0.453 0554 0.478 0.412 0.307 0.375 0.308 0.208 0.377 0.295 0.231 0.142 0.312 0.233 0.174 0.097 0.215 0.146 0 099 0.046 0.149 0.104 0.092 0.059 0.057 0.033 0.022 0011 Ent Print Done Type here to search E a 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 14%h (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.) Reference - Periods 1 2 2% 1.000 2020 3060 4.122 5204 1.000 2010 3.030 4060 5.101 4% 1.000 2040 3.122 4246 5416 1.000 2030 3.091 4. 184 5300 3 4 5 12% 1.000 2120 3.374 4779 6.353 6 7 8 9 10 5.152 7.214 8.286 9.389 10.462 8.633 7898 9214 10 583 12.000 Future Value of Annuity of $1 5% 6% 8% 10% 1.000 1.000 1.000 1.000 2050 2.060 2080 2.100 3.153 3.184 3.246 3.310 4.310 4 375 4.500 4.641 5525 5637 5.857 6.105 5.802 6.975 7.336 7.716 8.142 8.394 8.923 9.487 9549 9.897 10.637 11.436 11027 11.491 12.488 13.579 12578 13.181 14487 15.937 14207 14972 16.645 18.531 15 917 16 870 18 977 21.334 17.713 18.882 21 495 24523 19.599 21015 24 215 27975 21579 23 276 27.152 31.772 33 000 36786 45.762 57 275 47727 54 365 73.106 98.347 66439 79058 113 283 164494 120 800 154.762 259 057 442 593 6.308 7434 8.583 9.755 10.950 12.169 13.412 14.680 15 974 17.283 24 297 32030 40 568 60402 11 12 13 14 15 8.468 7662 8 892 10.159 11.464 12 300 14.190 15.618 17 036 18590 20 870 36.459 47575 75.401 11.567 12.683 13 809 14 947 16 007 14% 16% 18% 20% 1.000 1.000 1.000 1.000 2140 2.160 2180 2 200 3.440 3.505 3.572 3.640 4.921 5.088 5215 5.368 6610 6 877 7.154 7 442 8536 8.977 9.442 9.930 10.730 11 414 12 142 12916 13.230 14 240 15327 16.499 16085 17 519 19.088 20.799 19.337 21321 23521 25 959 23.045 25.733 28.755 32 150 27 271 30.850 34931 39 581 32 089 36.780 42210 48 497 37581 43.672 50.818 59 190 51 660 60 965 72035 91025 115 380 146 628 186 68 181 871 249 214 342 603 471 981 356.787 530 312 790 948 1,181 882 1.342.025 2.300.757 4,163 213 7.343.850 8.115 10089 12 300 14.776 17.549 20.655 24.133 28.029 32 333 37.280 72.052 133 334 241 333 787 091 13.486 15020 16 627 18 292 20.024 29778 41.645 56.085 95020 20 25 30 40 22019 28 243 34785 48 886 a Type here to search 8 the icon to view the preserva (Click the icon to view the future value annuity table.) (Click the icon to view the future value table.) - X i Reference Future Value of $1 Periods 6% 1.060 10% 1.100 1 1 124 1210 2 3 4 5 1% 1.010 1.020 1.030 1.041 1.051 2% 1020 1,040 1.061 1.082 1.104 3% 1030 1.061 1 093 1.126 1 159 4% 1.040 1.082 1.125 1.170 1 217 5% 1.050 1.103 1.158 1.216 1.276 8% 1.080 1 166 1260 1380 1.469 12% 1.120 1.254 1405 1.574 1.762 14% 1.140 1300 1.482 1 689 1925 16% 1.160 1346 1.561 1.811 2100 18% 1.180 1.392 1.643 1.939 2.288 20% 1.200 1440 1.728 2074 2.488 1.191 1.252 1338 1.331 1.464 1611 6 7 8 1.052 1.072 1083 1.094 1.105 1.128 1.149 1.172 1195 1.219 1.194 1 230 1.267 1.305 1.344 1.265 1316 1369 1423 1.400 1.340 1.407 1.4 1.551 1629 1.419 1504 1.594 1689 1.791 1.587 1714 1.851 1.999 2159 1974 2211 2.476 2.773 3.106 2438 2826 3 278 3.803 4 411 2.700 3.185 3.759 4.435 5.234 2986 3.583 4300 5.160 6.192 10 1.772 1.949 2144 2.358 2.594 2.853 3138 3452 3.797 4 177 2.195 2.502 2.853 3.252 3707 4226 4818 5.492 6.261 7.138 11 12 13 14 15 1.116 1.127 1.138 1.149 1.161 1.243 1 268 1.294 1319 1.346 1 384 1428 1.469 1.513 1.558 1539 1601 1665 1.732 1 801 1.710 1796 1.886 1.980 2079 1 898 2012 2 133 2.261 2397 2332 2518 2.720 2.937 3.172 3.479 3.896 4.363 4.887 5474 5.117 5.936 6.886 7.988 9.266 6.176 7.288 8.599 10.147 11 974 7430 8.916 10.699 12 839 15.407 38.338 95.398 237 376 1.469.772 20 25 30 40 1.220 1.282 1348 1.489 1.486 1.641 1.811 2.208 1 806 2.094 2.427 3.262 2.191 2666 3 243 4.801 2653 3.386 4322 7040 3.207 4292 5.743 10 286 4661 6.848 10 063 21.725 6727 10.835 17.449 45.259 9646 17 000 29.960 93.051 13 743 26.462 50 950 188 884 19.461 40.874 85.850 378.721 27393 62 669 143371 750 378 O Type here to search BI e Water Nation is considering purchasing a water park in Atlanta, Georgia, for $2,050,000. The new facility will generate annual net cash inflows of $520,000 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. Its owners want payback in less than five years and an ARR of 10% or more Management uses a 14% hurdle rate on investments of this nature. (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.) The payback period is years. (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 Enter any number in the edit fields and then continue to the next question. e a DO o se

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