Drop down options:

Requirement 1 (pt 1): Amount invested, Average amount invested, Expected annual net cash inflows, Present value of net cash inflows

Requirement 1 (pt 2): Amount invested, Average amount invested, Average annual operating income, Present value of net cash inflows

Requirement 1 (pt 3):

The IRR (internal rate of return) is between: 12-14, 14-16, 16-18, 18-20 (%)

Amount invested, Average annual operating income, Initial investment, Present value of net cash inflows

Requirement 2:

should or should not

greater than or less than

negative or positive

greater than or less than

greater than or less than

Reference 1 2% 10% 12% Periods % 0 2 1 4 1 8 1 2 25 71 43 5 1 Q342 1924 02 Q907 4 22 4 6% 34 2 ,747 Present Value of $1 8 $42 $ Q4 . @ .A3 1 26 1 0621 .12 @S 0567 14% 6 2 813 15% Q. 8 8 .497 16% 743 Q641 .88 2.4 1 . Q609 Q516 .47 20% Q94 8 2.4 2.42 0.666 42 Q23 14 05 ! 20 1 6 .744 @ 1 Q. S 0746 Q11 Q846 814 06 892 .85 QQ Q5 540 Q500 2.4 8 844 1.5 1.5% 547 502 .460 .42 1.564 1.51 457 @.424 507 452 .404 81 22 46 Q.400 1 2.2 0.42 24 247 .41 4 Q06 2 Q227 QQ 14 256 .225 2.11 35 .27 .28 2.14 2.1 9 12 11 12 1 14 16 1 4 58 Q.74 722 1 1 1 642 80 6 1 27 47 4 .442 .417 .46 1.444 .415 Q362 429 40 15 26 2 25 50 13 .20 23 29 . 257 .29 2 1 20g .1 2.1 140 215 .1 .1 2.141 2.18 1 .1 146 2.125 1 Q1 1 Q116 .099 Q024 1 .112 098 05 8 1.41 18 17 1 13 63 44 28 20 14 000 & Q23 0.606 .5 .5 .554 4 513 1.494 Q.46 048 1.45& 0.438 416 0394 0371 360 Q1 12 Q317 Q295 Q27 25 22 Q2 250 22 Q215 0.252 221 .212 .14 17 Q21 .1 Q1 .14 .149 1 148 Q1 Q116 14 Q12 108 0.05 Q107 093 1 QQ 0.061 0.00 Q069 Q060 1 Q060 0.051 Q043 .64 Q045 0.0 1 026 21 24 .044 028 Q11 03 60 47 4 22 822 .492 .4 422 .4$ 53 42 Q326 1 4 2.27 22 247 Q242 226 Q211 197 2.1 2.14 2.1 2.1 .14 Q150 .1 1 Q.15 01 2.112 Q102 Q0 @@ Q074 Q064 66 043 043 046 040 Q036 ] 026 022 Q19 .022 QQ QQ15 13 002 Reference -- 14 5 Q& : 20 13 768 744 70 1 . Q11 0645 0814 Q.5 88 0.52 844 0.50 .540 .50 468 0547 1.502 .460 1.422 0513 46 .424 0.452 404 1 1.400 1 20 27 24 1247 4 .28 0314 .266 0.225 Q11 .27 2 14 Q12 1 11 12 13 14 15 Q1 4 743 722 QQ1 1 @$1 Q642 660 025 001 577 .888 Q5 0557 0.580 0.506 04] 527 0.497 1.48 1.442 1.417 1.46 1.444 1.415 0 49 097 0340 0.315 038 Q:28 299 Q275 0350 13 0.2 .26 Q23 0.2 .257 0.229 0.25 1 .2 .20 Q1 0.1 Q140 .218 T.1 .1 .141 .12 1 .1 0.146 126 108 .12 0.137 Q116 099 4 .1 Q112 092 0.844 16 17 1 13 .14 873 Q23 Q06 .5 84 524 813 .44 .45 .456 2.45 .46 2.418 4 1 30 1 12 Q17 .28 2.277 258 292 2 250 22 Q215 268 0.231 Q212 14 17 .21 .1 .1 14 .149 148 Q.1 Q116 14 .12 .1 Q07 Q107 1 QQ QQ Q1 1 QQ70 @@ .048 1 Q1 64 Q045 1 028 28 21 22 24 5 Q11 Q02 % 0647 Q34 22 0522 0.507 .42 047 0.4 0422 406 Q390 368 0.342 28 1 % 2.294 .27 0.28 .247 28 .242 .226 Q211 197 14 Q1 .14 Q1 .15 2.148 .14 150 Q13 .12 0.116 .1 Q122 Q112 .102 092 QQ: QQ74 066 0.00 Q064 Q04 0.048 Q200 052 0.046 040 0.0 Q030 .044 20 02 Q024 Q01 0.026 022 2018 022 .01 5 0013 0010 27 Q764 ,749 .42 .59 .5 .874 .56 552 Q.464 .450 2.437 424 .412 2.361 Q4 1 30 21 266 24 Q21 .220 .207 16 Q1 Q174 1 .181 150 Q141 11 Q.15 .15 Q116 .17 .1 9 @ 75 04 QQ7 . .047 042 2.0 @@ Q026 022 020 Q026 023 Q.020 Q17 QQ15 Q21 201 Q016 14 QQ12 014 11 QQ12 Q. @@? @@@ .005 Q04 47 2.48 . Q142 046 22 11 . Q.4 Q.00 1 80g 22 Q.141 64 4 21 0.00 Q.001 0001 1 Reference Periods } % 1370 241 302 4.62 2% 142 24 2 371 131 229 4.5 4% 1962 1. 2.76 3 4.452 5% 2 1.59 2.28 545 4. Present Value of Ordinary Annuity of $1 % 10% 943 25 17 QQ 1.3 1.08 17 1769 1736 28 2624 2.5 1 2.4 3.4 3312 240 3.1 4.212 4.100 90 1 12 14% 10 1847 2.402 222 3. 14 05 3.4 15% 16% 1.8 105 2.23 2.248 25 2.79 382 3.274 1% 1566 2.14 2.90 .127 20% 152 16 25 291 4 6 4.1 4.366 5242 802 5 72 ? 5S 9.471 5 $472 25 .1 5.417 $230 020 50 5 5. 6.4 7.1 22 4.17 5.5 6.21 4. 5. 51 $515 024 4.2 5.206 5.747 6.247 6.71 4.46 5.03 5.55 5% $41 4.111 4.584 4. 5. 5.50 5.236 5.78 6.145 4.2 4.6 4.94 5.216 3.4 4.160 4.4 4.772 513 4.39 4.44 4. 4. 3.4 312 4. 4.30 4.494 326 6 4.01 4.12 7.436 111 1 11 12 1 14 15 8.4% 14 7.1 5 6.14 $424 11 5.45 580 5842 2 $142 6.234 5.421 55 5.724 5.47 5.02 517 542 5.4 5.55 4.66 4. 4. 5.00g 5.2 4. 4.49 4.5 4.811 4.85 1 17 1 13 1 25 &&7 .49 7.1 06 11.2 10575 54 4 7943 788 714 12.14] 114| 105 4 904 4 13.04 | 12.1 | 11.2 | 10.5 25 45 .244 778 13] 12.34] 11.11.11| 10 12 3.1 .559 1 14.71] 13.57 | 12.581 | 11.2|10| 10.1 9447 1 13 16 | 14.292 | 13.16| 12.1 | 11.24| 10.47] 9.68 122 544 16 | 14.2 | 13.754 | 129 | 11.60] 10| 109 33 .56 17.226|15.8 14.24] 13.14|12| 11.1|108 3.604 ,950 148 | 16.81 | 14. | 13.80] 12.4 | 11.4 10.594 91 17]1711 | 15.415| 14.029 | 121 | 11.74| 10 | 10.17 9.22 1QQ | 176 | 157 | 14.451 | 13.1 12.042 | 11.1 12.201 .442 0.4 | 1.2 | 16.444 | 14.7] 13.4| 12.11.22 | 10.31 5 21.24 | 1914| 16 16.247 | 13.7] 12.11.4 | 10.529 24 .022 .21 .366 14 74 7.120 250 4 $268 63 6.47 $560 E823 54 5 6.047 5749 $128 51 $198 5. 250 5.29 5.18 5.222 5273 5316 5. 4.70 4.75 4.12 4.44 4. 21 5 649 , 52 $45 771 4 $747 792 12 $359 $399 5.434 $011 044 54 5.41 5.4 5.41 4.1 4. 4.925 4. 24 Reference $.7 662 566 9.471 6.47 25 .1 230 020 S002 6. 7.4 .111 5. 6.4 7.1 7.72 55 210 2 53 571 815 024 5.206 5.747 247 6.710 5 5.55 5995 5.41 5.236 5.75 $.146 4.564 4.96 5. 5.650 4.2 4. 4.4$ 5.216 4.1 4.4 4.772 5013 4.2009 4.244 4.60 312 4. 4. 4.44 305 4.1 4.1 1 11 12 13 14 16 1 9.253 , 11.26 | 10.56 34 12.14] 11.4] 10.85 3. 4 04 |12.1111.2]105 3 13 | 1249 | 11. | 11.11] 1 7.4 4 7943 925 ,746 12 1 7.1 4 .244 .88 6 7.11 7.47 1 6.4 614 100 6. 6.14 $424 62 $ 11 5.4 5 5.42 6.02 $142 5.24 5.421 5.8 5.724 5.47 5. 5.1 542 5.4 5.55 4.66 4.7 4.10 5.00 5. 4. 4.48 4. 4.811 4.875 18 17 1 13 14.71]137]121 |11.21110.1 .447 15.5 14.13.1|12.1|11.274|10.47 16.14.| 13.4 | 12.11.1| 10.059 17.228] 16.87] 14.24] 13.134 | 12] 11.1|108 1047|161114.37711312.4| 11.4]10504 ] 3.12 3 3.604 1 13 .544 ,756 0 9.1 24 022 2011 814 674 7.12 7.250 7.4 26 54 47 $487 8.1 $0 1 250 5. 5.749 5.1 5. 5929 5.12 5222 5.2 5316 53 4.730 4.5 4.12 4.44 4. 21 17]1711116.416 14.29]121 111.784 11|1 19]171167114.451 13.1 | 12.42] 11.1 10.21 .48 | 1.2 | 16.444 | 14.] 13.4| 12.11.2 | 10371 1.24 114116 16.247 11 12 ] 11.4 10 2 | 19.82 | 17.413 | 15.22 | 14.4 | 12. | 11.64 | 10.86 9.22 9.442 5 24 % $49 .8 985 $45 771 4 4 $ $748 5 12 89 $434 $464 53 $11 44 EQ 5.4 5.412 5.42 5.451 5.467 4. 4.909 4.25 4. 4.48 2.0.121 | 177 | 15.3] 14.3 | 13. | 118| 1212 .11 2.5 0.7 | 1] 16 14.64 | 13.211 | 11.9|10. | 10.27 2 943 24.31] 21.21 | 1,764 | 16 | 14.| 13.4| 12.137 | 11.1 | 10.116 4 8. | 21.344 | 191| 16984| 15.141 | 131 | 12.2|11.1|10.193 022 5. | 2| 190 | 17.22| 15372 | 13.76] 12.4 11.25 | 10.274 2.427 66 06 5 1 27 $.41 6514 584 $81 568 11 $.1 8.1 6.1 $1 5.4 5.4 5802 5.512 5517 4.966 4.4 4.370 4.75 4. 6 42 | 27.115 | 19.7 | 17.19| 15.48 | 13. | 11.8 | 10.57 .244 7.16 $842 6.2 5.84 4. 50 1|1.424 | 28, 21.4 | 1256 | 16.7 | 13.1 12.2 | 12 15 04 718 1 $248 584 4. Reference Future Value of $1 Periods * 2 1% 1.2010 1.020 1.00 141 1.61 1020 1040 1.1 10 1.104 1.0 1061 1098 1.18 1.1 4% 1.040 1.2 1.15 1.1 1.217 1.60 1103 1.1 1.216 1.26 1060 1.124 1.11 1.262 1. 10 1.146 1.225 111 1.4 1. 11 1260 160 1.48 1. 1.1 125 1.412 1.50 10% 1.100 1210 1. 1 1.464 111 12% 1.12 1.254 1.406 1.74 172 14% 1.147 100 1.4 1. 15 15% 1.150 1. 1.821 1.749 211 4 5 1062 1. 1. 1.94 1.1 1.128 1.149 1.1 11 1.219 1.14 1.2 1.28 16 1.344 1266 116 1.39 1.428 1.40 140 1.47 1.477 1.881 1.6 1.419 1.04 14 18 11 1.501 1 1.1 1.5 1. 1.14 12 11 19 1 2.172 2.1 2. 1.772 1.949 2.144 2. 2.594 174 211 2.4 2. 1 2.1% 2.502 2 3.2 3.07 2.313 2. 69 351 4.046 10 1. 11 12 13 14 16 1.116 1127 118 1149 1.181 124 1. 194 1.13 146 14 15 1.428 11 1.49 16 1513 12 16 1.1 1.710 1796 1. 1. 1. 22 2.1 221 2 2.1 2.252 2.410 2.57 2.59 2.2 2.5 2.1 2.70 3.06 2 3342 31 3642 2 3.1 3.452 3.78 4.177 3.49 6 4. 4. 5.474 4.226 4. 5.492 281 1 4.62 5.360 6.1 .17 22 3.48 3.1 18 17 1 13 20 1.1 1.14 11 120 1.220 13 1.400 1.42 1.467 1.4 106 168 1.72 1.64 1. 1. 14 2.026 2.107 2.1 2.1 2. 2.407 2.827 2 2.540 24 026 3.207 3 4.32 4.717 5.142 5.S04 4.5% 5.64 5560 118 $727 $130 BE ] 9.646 .17 276 10 12 13.74 1, 12. 14.2 16 3. 4.318 4.1 1 2 24 1.2 1.245 1.257 1.270 1816 1546 1.577 10 1 1.15 174 2 2.2 2 2.4% 2.5 2. 225 072 225 3.4 4 30 4.049 4.141 4.4 4.741 5 54 8.1Q 5.437 5.1 25 641 911 400 .140 4 100 12.10 1 16.1 15.87 17 21 1 2164 24. 950 Reference 1 1.72 1.0 194 1.1 1149 1.1 11 1213 1.230 1. 1.06 1.44 1316 1 1.423 1.40 1.40 1.4 1561 19 1.504 1.594 1. 1.1 1606 1. 1. 1 114 1.1 19 2.1 1. 1 2.1 2. 1949 2.144 2. 2.54 2.211 2476 2.7 3.16 2502 26 3.252 3707 260 069 51 4.04 1 11 12 13 14 16 1.118 1.127 1.1 1.149 1.11 1243 1288 1.294 113 1. 14 1.59 1.428 11 1.4 1.85 1813 1.72 18 11 1.19 1.7% 1 1. 2.QQ 1. 2012 2.1 2.261 2. 2.1 2.252 2.410 2579 2.759 22 2.5 2.518 213 2.720 3066 2 3342 3.172 3642 2.1 3.452 3. 4.177 47 8 4. 4. 5.474 4.228 4.1 5.42 21 7.1 4.62 5.250 $158 7076 1 18 17 1 13 1.1 1.14 1.1% 1.20 1220 1 1.400 1.42 1.467 1.4 16 1. 2.1 1.63 14 2.22 1. 28 2.407 1.754 2107 2.827 1. 2.11 26 2.540 2 24 26 3.207 22 3.48 370 3.1 4. 4.717 3817 4.318 5.142 4.1 504 4.55 5064 5560 $118 6.27 10 6 13 46 .17 276 10 12 1374 1. 12. 14.2 187 21 2 1.232 1.246 1257 1.27 1.2 1818 1.548 1877 108 141 1 22 1.16 174 .46 2. 2.56 24 26 2. 225 30 226 36 3.400 04 20 4.049 4.92 4.141 4.40 4.741 572 5.427 54 5.437 51 6.41 4 $1 68 258 11 .622 .400 .140 964 50 1 1 12.10 138 16.1 17.00 15.8 17 6 21 8.48 1,2 2164 24 28 2 24 5 27 1296 17 1 1. 11 1741 1.25 1.76 14 1.11 2.157 2221 2.2 2. 2.427 2.72 3656 2. 29 3.20 3.119 4.116 3.248 4.2 4.549 4.22 5.112 5.41 5.74 5. $214 6849 7.114 12 3317 1206 9399 1025 11.17 12.17 1327 11. 12.11 14.42 15 17.45 194 21 22. 17 4. 20 44. 42.54 @@? 21 40 1.4 2.20 22 4.01 7040 10.29 14.37 21 1.41 45.26 1 2573 1645 22 4.4 7.17 11.47 1.42 9.46 46 74.36 117.4 20 02 1,04 Reference Periods 1 1% 1.000 2.010 3.030 4.060 5.101 2 2% 1.000 2.020 3.060 4.122 5.204 3% 1.000 2.030 3.091 4.184 5.309 Future Value of Ordinary Annuity of $1 4% 5% 6% 7% 8% 9% 1.000 1.000 1.000 1.000 1.000 1.000 2.040 2.050 2.060 2.070 2.080 2.090 3.122 3.153 3.184 3.215 3.246 3.278 4.246 4.310 4.375 4.440 4.506 4.573 5.416 5.526 5.637 5.751 5.867 5.985 10% 1.000 2.100 3.310 4.641 6.105 12% 1.000 2.120 3.374 4.779 6.353 14% 1.000 2.140 3.440 4.921 6.610 15% 1.000 2.150 3.473 4.993 6.742 3 4 5 6 6.308 7.434 7 8 9 10 6.152 7.214 8.286 9.369 10.46 6.468 7.662 8.892 10.16 11.46 6.633 7.898 9.214 10.58 12.01 6.802 8.142 9.549 11.03 12.58 6.975 8.394 9.897 11.49 13.18 7.153 8.654 10.260 11.98 13.82 7.336 8.923 10.64 12.49 14.49 7.523 9.200 11.03 13.02 15.19 7.716 9.487 11.44 13.58 15.94 8.115 10.09 12.30 14.78 17.55 8.536 10.73 13.23 16.09 19.34 8.754 11.07 13.73 16.79 20.30 9.755 10.95 11 12 13 14 15 11.57 12.68 13.81 14.95 16.10 12.17 13.41 14.68 15.97 17.29 12.81 14.19 15.62 17.09 18.60 13.49 15.03 16.63 18.29 20.02 14.21 15.92 17.71 19.60 21.58 14.97 16.87 18.88 21.02 23.28 15.78 17.89 20.14 22.55 25.13 16.65 18.98 21.50 24.21 27.15 17.56 20.14 22.95 26.02 29.36 18.53 21.38 24.52 27.98 31.77 20.65 24.13 28.03 32.39 37.28 23.04 27.27 32.09 37.58 43.84 24.35 29.00 34.35 40.50 47.58 16 17 18 19 20 17.26 18.43 19.61 20.81 22.02 18.64 20.01 21.41 22.84 24.30 20.16 21.76 23.41 25.12 26.87 21.82 23.70 25.65 27.67 29.78 23.66 25.84 28.13 30.54 33.07 25.67 28.21 30.91 33.76 36.79 27.89 30.84 34.00 37.38 41.00 30.32 33.75 37.45 41.45 45.76 33.00 36.97 41.30 46.02 51.16 35.95 40.54 45.60 51.16 57.28 42.75 48.88 55.75 63.44 72.05 50.98 59.12 68.39 78.97 91.02 55.72 65.08 75.84 88.21 102.4 21 22 23 24 23.24 24.47 25.72 26.97 25.78 27.30 28.85 30.42 28.68 30.54 32.45 34.43 31.97 34.26 36.62 39.08 35.72 38.51 41.43 44.50 39.99 43.39 47.00 50.82 44.87 49.01 53.44 58.18 50.42 55.46 60.89 66.76 56.76 62.87 69.53 76.79 64.00 71.40 79.54 81.70 92.50 104.6 118.2 104.8 120.4 138.3 158.7 118.8 137.6 159.3 184.2 i Reference x 7.44 7.214 9 10.46 2 2 10.16 11.46 9.214 10.5 121 .142 3543 11 1258 4 11.4 13.1 64 10.250 11. 13 2 1064 12.9 14.48 32 11. 13.2 16.19 9.4 11.44 13.5 164 1 12 14.7 178 1 1 28 16 134 11.7 13. 16. 10% 10 11 12 13 14 16 11.57 12.8 12.1 14.5 18.19 12.17 13.41 14. 16.97 179 12.1 14.13 16 17 1 (48 16.0 16 1 002 14.21 162 17.1 190 21 14.7 1 1 21.02 282 16. 17 2014 22.8 5.13 186 1 210 24.21 2715 17.8 0.14 22 1 21. 24.2 27 1.77 24.13 , 2 23.14 27.27 24. 9 4.6 4. 47 4 18 17 1 19 17 1.42 19] 1 21.41 24 24.0 18 21. .41 5.12 26. 21. % 27 84 2.13 .54 25.7 21 27 4 4 41.0 .46 41.46 457 .00 41.0 51.16 40.54 45 116 57, 2.6 4 875 :44 2.6 8.12 .7 102 6.72 5.4 :21 1.4 37 % 21 22 24 % .24 24.47 5.72 :24 5. 27 .42 54 .45 4.43 8.46 2 .51 41.43 44.50 47. 42 47 4. 44. 49 8.44 .1 25 50.42 8.4 11 4. 4. 1.40 54 6 .50 14.8 112 1 14.8 11 12.4 18 1 183 1 12 119 212. 41.6 6 27 2 .13 .45 4. 4057 .8 421 422 46.22 47.5 44.1 47 497 37 8 5111 84.7 .40 44 8.16 71 4 ,68 4.4 4.48 4 14.0 1133 1. 1130 124.1 1 12 1 121.1 1.4 142 17 146 2148 14.5 2413 5 272.9 12.1 246.7 28 7.1 2 44.7 42 .40 5.40 122.8 154. 18 201 4426 1 1342 1,779 4.95 17.21 4.48 4.5 112 17 45 5 16.1 1.164 2,400 Splash City is considering purchasing a water park in Atlanta, Georgia, for $1,870,000. 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 return of 10% 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 $1 table.) (Click the icon to view Future Value of Ordinary Annuity 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, XX.) Payback years Next, determine the formula and calculate the accounting rate of return (ARR). (Round the percentage to the nearest tenth percent, X.X%.) ARR % Calculate the net present value (NPV). (Enter any factor amounts to three decimal places, X.XXX.) Present Net Cash Inflow Annuity PV Factor (i=10%, n=8) Years Value 1-8 Present value of annuity 0 Investment Net present value of the investment The IRR (internal rate of return) is between Finally, determine the formula and calculate the profitability index. (Round your answer to two decimal places, X.XX.) Profitability index Requirement 2. Recommend whether the company should invest in this project. Recommendation: Splash City invest in the project because the payback period is the NPV is the profitability index is and the ARR and IRR are required rate of return. the operating life, the company's one