Com @ PA:TV STAY HOME .. Case Study for 10 Marks well Question 3: Using payback, ARR, NPV, IRR, and profitability index to make capital investment decisions Water Country is considering purchasing a waterpark in Atlanta, Georgia, for S1,850,000. 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 uses straight-line depreciation, and its stockholders demand an annual retum of 12% on investments of this mature, Requirements 1. Compute the payback, the ARR the NPV, the IRR, and the profitability index of this investment 2. Recommend whether the company should invest in this project