Chapt Reference Reference g purcha e deprecie the pres 20%) the futur the payb Present Value of Annuity of $1 Periods 1% 2% 3% % % 3% 4% 5% 6% 8% 10% 12% 14% 16% 18% 20% 6% 8 % Period 10.990 0.980 0.971 0.962 0.962 0943 0.925 0.909 0.893 0.877 0.862 0.847 0.833 Perlod 2 1.970 1.942 1.913 1.886 1.859 1.833 1.783 1.736 1.690 1.647 1.605 1.566 1.528 Period 3 3 2.941 2.984 2.829 2.775 2.723 2.673 2.577 2.487 2.402 2.322 2.246 2.246 2.174 2.106 Period 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 Period 5 4.8534713 4.580 4.452 4.329 4212 3.990 3.791 3.605 3.433 3.274 3.127 2.991 Period 6 5.795 5.601 5.417 5.2425.076 4.917 4.623 4.355 4.111 5.076 4.917 4.623 4.355 4.111 3.8893.685 3.498 3.326 Perlod 7 6.728 6.472 6.230 6.002 5.786 55825.206 4.868 4.564 4.288 4.039 3.812 3.605 Period 8 7.652 7.325 7.C20 6.733 6.463 6210 5.747 5.335 4.969 4.639 4.344 4.078 3.837 Period 9 8.588 9.162 7.786 7.435 7.108 6.802 6.247 5.759 5.328 4.948 4.607 4.303 4.031 Period 10 9.471 9.963 8.530 8.1117.722 7360 6.710 6.145 5.650 5.216 4.833 4494 4.192 Period 11 10.368 3.7879.253 8.760 8.306 7.897 7.139 6.495 5938 5.453 5.029 4.656 4.327 Period 12 11.255 10.575 9.954 9.385 0.863 8.384 7.536 6.814 6.194 5.660 5.197 4.793 4.793 4.439 Period 13 12.134 11.346 10.635 9.966 9.394 8.853 7.904 7.106.424 5.642 5.342 4910 4,910 4.533 Period 14 13.004 12.106 11.256 10.563 9.899 9.295 8.244 7.3676 628 6.002 5.468 5.008 4611 Period 15 13.865 12.849 11.938 11.118 10.380 9.712 8.559 7.60 6.811 6.142 5.575 5.092 4.675 Period 20 18.046 16.351 14.877 13.500 12.462 11.470 9.818 8.514 7.469 6.623 5.929 5.353 4.870 Period 25 22.023 19.523 17.413 15.622 14.094 12.703 10.675 9.777.843 6.73 6.097 5.487 4.948 Period 30 25.000 22.396 19.600 17.292 15.372 13.765 11.258 9.4278.055 7.003 6.177 5.517 4.979 Period 40 32,835 27.355 23.115 19.793 17.159 15046 11.925 9.7798244 7.106 6.233 5.548 4.997 Future Value of Annuity of $1 Perlods 1% 2% 3% 4% 5% 6% 8% 10% 2% % % % % % 12% 14% 16% 18% % Period 1 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 Period 2 2.010 2.020 2.030 2.040 2.050 2.060 2.080 2.100 2.120 2.140 2.160 2.180 2.200 Period 3 3.0303.060 3.091 3.122 3.153 3.153 3.184 3.184 3.246 3.310 3.374 3.440 3.506 3.572 3.640 Period 4 4.080 4.122 4.1644246 4.310 4.310 4.375 4.506 4.641 4.779 4.921 5.066 5.215 5.368 Period 5 5.101 5.204 5.309 5.416 5528 5.637 5.867 6.106 6.353 6.610 6.877 7.154 7.442 Period 6 6.152 6.308 6.468 6.633 6.802 6.975 7.336 7.716 8.115 8.536 8.977 9.442 9.930 Period 7 7.214 7.434 7.662 7.898 8.142 8.394 8.394 8.423 9.487 10.089 10.730 11.414 12.142 12.916 Period 8 8.286 8.583 8.492 9.214 9.549 9.897 10.637 11.436 12.300 13.233 14.240 15.327 16.499 Period 9 9.369 9.755 10.159 10.583 | 11.027 11.491 12.488 13.579 14.778 16.085 17.519 19.086 20.799 Period 10 10462 10.950 11.484 12.006 12.578 13 181 14.487 15.937 17.549 19.337 21.321 23 521 25.959 Period 11 11.567 12.169 12.9013.486 14.207 14.972 16.645 18.531 20.655 23.045 25.733 28.755 32.150 Period 12 12.803 13.412 14.192 15.026 15.917 16.870 10.977 21.384 24.133 27.271 30.850 34.901 39.581 Period 13 13.809 14.680 15.818 18.627 17.713 18.882 21.495 24.523 28.029 32.069 38.786 42 219 43.497 Period 14 14.947 15.974 17.086 18.292 19.599 21.015 24.215 27.975 32,393 37.581 43.872 50 818 59.196 Period 15 16.097 17.293 18.599 20.024 21.579 23.276 27.152 31.772 37.280 43.842 51.660 60.965 72.035 Period 20 22.019 24.297 26.870 29.778 33.05 36.786 45.762 57.275 72.052 1.025 115.390 115.390 146.628 146.628 196.688 Period 25 29.243 32.030 36.459 41.846 47.727 54.866 73.106 98.347 133.334 191.871 249.214 342.603 471.981 Period 30 34.705 40.568 47.575 58.005 66.439 79.058 113.263 164 494 241.333 356.787 530.312790 948 1,101.662 Period 40 48.88 60,402 75.401 95.02 120.800 154.762 259.0574-2.593 767.091 1,342.025 2.380.757 4,163 213 7.343.858 ars) is - X Reference Reference Future Value of $1 Periods 1% 25 3% 45 5% 6% 8% 10% 12% 14% 16% % 18% 20% Period 1 1.010 1.020 1.050 1.040 1.060 1.000 1.080 1.100 1.120 1.140 1.160 1.160 1.200 Perlod 2 2 1.020 1.040 1.061 1.062 1.103 1.124 1.166 1210 1.254 1.300 1.346 1.392 1.440 Period 3 1.030 1.061 1.093 1.125 1.158 1.191 1.250 1.331 1.405 1.482 1.561 1.643 1.728 Period 4 1.041 1.062 1.126 1.170 1.216 1.262 1360 1.484 1.574 1.689 1811 1.939 2074 Period 5 1.061 1.104 1.159 1217 1.276 1.338 1.469 1.611 1.7621,925 2.100 2.268 2439 Period 6 1.062 1.126 1.194 1.265 1.340 1.419 1.587 1.772 1.974 1.9742.195 2.436 2.700 2986 Perlod 7 1.072 1.149 1.149 1.230 1.316 1.316 1.407 1.504 1.714 1.949 2.211 2.502 2.502 2.826 2.826 3.185 3583 Period 8 1.083 1.172 1.267 1.369 1.477 1.594 1.851 2.144 2.476 2.853 3.278 3.759 4.300 Period 9 1.064 1.195 1.305 1.423 1.561 1.689 1.999 2 359 2.773 3.252 3.803 4.435 5.160 Period 10 1.105 1.219 1.344 1.480 1.629 1.791 2159 2592 3.106 3.707 4.411 5.234 6.192 Period 11 1.116 1.243 1384 1.539 1.710 1.898 2 332 2853 3.479 4.226 5.117 5.1176.176 7.430 Period 12 1.1271.268 1.268 1.42 1.601 1.796 2.012 2518 3.139 3.9984.818 5.936 7.288 8.916 Period 13 1.138 1.294 1.469 1.685 1886 2.133 2720 3.452 4,363 5.492 5.492 6.886 6.8868.569 10.699 Period 14 1.149 1.319 1.513 1.732 1.980 2.261 2.261 2937 3.797 4 BAZ 6.261 7.988 10.147 12 839 Perlod 15 1.161 1.346 1.569 1.801 2.079 2.397 3.172 4.1775474 7.1389.266 11.974 9.266 11.974 15.407 Period 20 1.220 1.486 1.806 2. 191 2.663 3.207 4.661 6.727 4.6616.727 9.646 13.743 19.461 27.393 38 339 Period 25 1.262 1.641 2.094 1.641 2.094 2.686 3.386 4.292 6.849 10.83517.000 26.462 40.874 62.669 96.393 Period 30 1.348 1.811 2.427 3243 4.322 5.743 10.063 17.449 29.960 50.950 85.650 143371 237.378 Present Value of $1 Periods 1% 2% 3% 4% 5% 6% 8% 10% 12% 14% 16% 18% 20% 2 3 % 8% % % % % Period 1 0.990 0.980 0.971 0.962 0.952 0.943 0.926 0.909 0.893 0.877 0.852 0.847 0.833 Period 2 0.980 0.961 0.943 0.925 0.907 0.890 0.857 0.826 0.797 0.769 0.743 0.718 0.694 Period 3 0.971 0.942 0.915 0.889 0.864 0.840 0.784 0.751 0.712 0.675 0.641 0.609 0.579 Period 4 0.981 0.924 0.889 0.955 0.823 0.792 0.735 0.683 0.836 0.592 0.552 0.516 0.482 Period 5 0.951 0.906 0.853 0.822 0.784 0.747 0.681 0.621 0.567 0.519 0.476 0.437 0.402 Period 6 0.942 0.888 0.837 0.790 0.746 0.705 0.630 0.564 0.507 0.456 0.410 0.370 0.335 Period 7 0.933 0.671 0.813 0.760 0.711 0.685 0.583 0513 0.452 0.400 0.354 0.314 0.279 Period 8 0.923 0.853 0.789 0.731 0.677 0.627 0.540 0.467 0,404 0.351 0.305 0.266 0233 Perlod 9 0.914 0.837 0.766 0.703 0.645 0.592 0.500 0.424 0.361 0.308 0.263 0.225 0.194 Perlod 10 0.905 0.820 0.744 0.676 0.614 0.556 0.463 0336 0.322 0.270 0.227 0.191 0.162 Period 11 0.896 0.804 0.722 0.650 0.585 0.527 0.429 0.360 0.287 0.237 0.195 0.162 0.135 Period 12 0.897 0.788 0.701 0.625 0.567 0.497 0.997 0319 0.257 0.208 0.16 0.137 0.112 Period 13 0.879 0.773 0.681 0.601 0.530 0489 0.368 0290 0.229 0.182 0.145 0.116 0.093 Period 14 0.870 0.758 0.681 0.577 0.505 0.442 0.340 0.263 0.205 0.160 0.125 0.099 0.078 Perlod 15 0.861 0.743 0.642 0.555 0.481 0.417 0.315 0239 0.183 0.140 0.108 0.084 0.065 Period 20 0.20 0.673 0.554 0.456 0.377 0.312 0.215 0.149 0.104 0.073 0.051 0.037 0.025 Period 25 0.780 0.610 0.4 0.375 0.295 0.233 0.146 0.092 0.059 0.038 0.024 0.016 0.010 Perlod 30 0.742 0.562 0.412 0.308 0.231 0.174 0.299 0.057 0.033 0.020 0.012 0.007 0.004 Splash World is considering purchasing a water park in Newark, New Jersey, for $1,950,000. The new facility will generate annual net cash inflows of $505,000 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 (in years) is