Ocean World is considering purchasing a waterpark in Oakland, California, for $2,050,000. The new facility will generate annual net cash inflows of $520,000 for eight years, Engineers estimate that the facility wil remain useful for eight years and have no residual value. The company uses straight-ine depreciation its owners want payback in less than five years and an ARR of 10% or more. Management uses a 12% hurdle rate on investments of this nature. Click the icon to view the present value annuity table) Cick 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 table 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 lome newest tenth percent) The ARR (ccounting rate of retumis (Round your awer to the nearest Whole dolar) Enter my number in the fields and then continue to the next question Ocean World is considering purchasing a water park in Oakland, California, for $2,050,000. The new facility will generat remain useful for eight years and have no residual value. The company uses straight-line depreciation. Its owners want 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 The ARR (accounting rate of return) is 0 %. (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. Reference Periods 1% 0.990 1.970 2.941 3.902 4.853 5.795 6.728 7.652 8.566 9.471 10.368 11.255 12.134 13.004 13.865 2% 0.980 1.942 2.884 3.808 4.713 5.601 6.472 7.325 8.162 8.983 9.787 10.575 11.348 12.106 12.849 3% 0.971 1.913 2.829 3.717 4.580 5.417 6.230 7.020 7.786 8.530 9.253 9.954 10.635 11.296 11.938 4% 0.962 1.886 2.775 3.630 4.452 5.242 6.002 6.733 7.435 8.111 8.760 9.385 9.986 10.563 11.118 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 2.577 2.487 3.546 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 5.759 7.722 6.145 8.306 6.495 8.863 8.384 7.536 6.814 9.394 8.853 7.904 7.103 9.899 9.295 8.244 7.367 10.380 9.712 8.559 7.606 12% 0.893 1.690 2.402 3.037 3.605 4.111 4.564 4.968 5.328 5.650 5.938 6.194 6.424 6.628 6.811 14% 16% 0.877 0.862 1.6471.605 2.322 2.246 2.914 2.798 3.433 3.274 3.889 3.685 4.288 4.039 4.639 4.344 4.946 4.607 5.216 4.833 5.453 5.029 5.660 5.197 5.842 5.342 6.002 5.468 6.142 18% 0.847 1.566 2.174 2.690 3.127 3.498 3.812 4.078 4.303 4.494 4.656 4.793 4.910 5.008 5.092 20% 0.833 1.528 2.106 2.589 2.991 3.326 3.605 3.837 4.031 4.192 4.327 4.439 4.533 4.611 4.675 7.360 6.247 6.710 7.139 7.887 5.575 Print Done 459 W 8 of 11 (2 complete) This i Reference Periods 5% 1.000 2% 3% 1.000 1.000 2.010 2.020 2.030 3.030 3.060 3.091 4,060 4.122 4.184 5.101 5204 5309 6.152 6.308 6.468 72147434 7.662 8.286 8.583 8.892 9.369 9.755 10.159 10.462 10.950 11.464 11.567 12.169 12.808 12 683 13.412 14.192 13 80914650 15.618 14.947 15 974 17 086 16.097 17.293 18.599 Future Value of Annuity of 1 10% 1.000 1.000 1.000 1.000 1.000 2.040 2050 2060 2.080 2.100 3.122 3.153 3.184 3.246 3.310 4.246 4.310 4375 4.506 4.641 5416 5.526 5.637 5.867 6.105 6,633 16.8026.975 7.336 7.716 7.8888.1428394 8.923 9.487 9.214 9.549 9.897 10.637 11.436 10.583 11.027 11.491 12.488 13.579 12.006 12.578 13.181 14.487 13.466 14 207 14.972 16.645 15.026 15.917 1 6.870 16.627 17713 18.882 21.495 18 292 19.599 21.015 20.02421579 27.152 12% 14% 16% 18% 1.000 1.000 1.000 1.000 2.120 2 .140 2.160 2.180 3.374 3440 3.5063.572 4.779 4.921 5 .000 5.215 6 35366106.877 7.154 8.115 8.536 8 .977 9.442 10.089 10.730 11.414 12.142 12.300 13 233 14 240 15.327 14.778 16.085 17 519 19.085 17.549 1 9.337 21321 23.521 23.045 25.733 28.755 24.133 27 271 30.850 34 931 28.029 32.089 36.786 42.219 37.581 43.672 50818 37.280 43.842 51.660 60.965 20% 1.000 2200 3.640 5.368 7.442 9.930 12916 16.499 20.799 25.959 32.150 39.581 48 497 59.196 72.035 20.655 e of 44977 comm 24215 23276 - in the Print Done i Reference s. Engineers or more. Ma Hug Periods ae 12% 0.893 0.797 0.712 0.636 14% 0.877 0.769 0.675 0.592 0.519 0.621 0.50 dolla 1% 2% 3% 0.990 0.9800.971 0.980 0.961 0.943 0.971 0.942 0.915 0.961 0.9240.888 0.951 0.906 0.863 0.942 0.888 0.837 0.933 0.871 0.813 0.923 0.853 0.789 0.914 0.837 0.766 0.905 0.820 0.744 0.896 0.804 0.722 0.8870.788 0.701 0.879 0.773 0.681 0.870 0.758 0.661 0.861 0.743 0.642 4% 0.962 0.925 0.889 0.855 0.822 0.790 0.760 0.731 0.703 0.676 0.650 0.625 0.601 0.577 0.555 Present Value of $1 5% 6% 8% 10% 0.952 0.943 0.926 0.909 0.907 0.890 0.857 0.826 0.864 0.840 0.794 0.751 0.823 0.792 0.735 0.683 0.784 0.747 0.681 0.746 0.705 0.630 0.564 0.711 0.665 0.583 0.513 0.677 0.627 0.540 0.467 0.645 0.592 0.500 0.424 0.614 0.558 0.463 0.386 0.585 0.527 0.350 0.557 0.497 0.397 0.319 0.530 0.469 0.368 0 290 0.505 0.263 0.481 0.315 0.239 16% 18% 20% 0.862 0.847 0.833 0.7430.7180.694 0.641 0.609 0.579 0.552 0.516 0.482 0.476 0.437 0.402 0.370 0.335 0.314 0.305 0.263 0.225 0.194 0.227 0.191 0.162 0.162 0.135 0.137 0.112 0.116 0.093 0.078 0.065 0.410 0.354 0.266 0.233 0.429 Ben the con 0.340 0.099 0.084 0.417 and then Print Done 459 W 8 of 11 (2 complete) i Reference Periods 10% 12% Future Value of $1 6% 1.060 1.080 1.166 1.260 1.120 125 3% 11.030 1.061 1.093 1.126 1.159 1.405 2% 1.020 1040 1.061 1.082 1.104 1.126 1.149 1.172 1.195 1.219 1.574 1% 1.010 1.020 1.030 1.041 1.051 1.062 1.072 1,083 1.094 1.105 1.116 5% 1.050 1.103 1.158 1.216 1.276 1.340 1.407 1.762 14% 16% 1,140 1.160 1.300 1.346 1.482 1.561 1.689 1.811 1.925 2.100 2.195 12.436 2 502 2.826 2.853 3278 3.252 3.803 1974 the 4% 1.040 1.062 1.125 1.170 1.217 1.265 1.316 1.369 1.423 1.480 1.539 1.601 1.665 1.732 1 1.194 230 1.267 1.305 1.344 1.384 2211 2.476 2.773 3.106 10% 1.180 1.392 1843 1.939 2.288 2.700 3.185 3.759 4.435 5.234 6.176 7288 8.599 10.147 11 974 1.200 1.440 1.728 2.074 2.488 2.986 3.583 4300 5.160 6.192 7.430 8.916 10.699 12.839 15.407 3.707 1.551 1.629 1.710 1.796 1.886 3.479 of 3.896 NNNNN 1426 1.127 2.720 2.937 3.172 1.469 comm 5.117 5.936 6.886 7.988 266 4.226 4.818 4.610 5.492 6261 7.138 4.363 4.887 5.474 9 1.161 1.801 in the Print Done