i Reference - X fi Reference Present Value of Annuity of $1 Periods Periods 5% 3.170 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 18.046 22.023 25.808 32.835 2% 3% 4% 5% 6% 0.980 0.971 0.962 0.952 0.943 1.942 1.913 1.886 1.859 1.833 2.884 2.829 2.775 2.723 2.673 3.808 3.717 3.630 | 3.546 3.465 4.713 4.580 | 4.452 4.329 4.212 5.601 5.417 5.242 5.076 | 4.917 6.472 6.230 6.002 5.786 5.582 7.325 7.020 6.733 6.463 6.210 8. 162 7.786 7.435 7.108 6.802 8.983 8.530 8.111 7.722 7.360 9.787 9.253 8.760 8.306 7.887 10.575 9.954 9.385 8.863 8.384 11.348 10.635 9.986 9.394 8.853 12.106 | 11.296 10.563 9.899 9.295 12.849 11.938 11.118 10.380 9.712 16.351 14.877 13.590 12.462 11.470 19.523 17.413 15.622 14.094 12.783 22 396 | 19.600 17.292 15.372 13.765 27.355 23.115 19.793 17.159 15.046 8% 10% 0.926 0.909 1.783 1.736 2.577 2.487 3.312 3.993 3.791 4.623 4.355 5.206 4.868 5.747 5.335 6.247 5.759 6.710 | 6.145 7.139 6.495 7.536 6.814 7.904 7.103 8.244 7.367 8.559 7.606 9.818 8.514 10.675 9.077 11.258 9.427 11.925 9.779 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 4.078 14% 16% 18% | 0.877 0.862 0.847 1.647 1.605 1.566 2.322 2.246 2.174 2.914 2.798 2.690 3.433 3.274 3.127 3.889 3.685 3.498 4.288 4.039 3.812 4.639 4.344 4.946 4.607 4.303 5.216 4.833 4.494 5.453 5.029 4.656 5.660 5.197 4.793 5.842 5.342 4.910 6.002 5.468 5.008 6.142 5.575 5.092 6.623 5.9295.353 6.873 6.097 5.467 7.003 6.177 5.517 7.1056 233 5548 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 1% 1.000 2.010 3.030 4.060 5.101 6.152 7.214 8.286 9.369 10.462 11.567 12.683 13.809 14.947 16.097 22.019 28.243 34.785 48.886 2% 1.000 2.020 3.060 4.122 5.204 6.308 7.434 8.583 9.755 10.950 12.169 13.412 14.680 15.974 17.293 24.297 32.030 40.568 3% 1.000 2.030 3.091 4.184 5.309 6.468 7.662 8.892 10.159 11.464 1.000 2.040 3.122 4.246 5.416 6.633 7.898 9.214 10.583 12.006 13.486 15.026 16.627 18.292 20.024 29.778 41.646 56.085 95.026 Future Value of Annuity of $1 6% 8% 10% 1.000 1.000 1.000 1.000 2.050 2.060 2.080 2.100 3.153 3.184 3.246 3.310 4.310 4.375 4.506 4.641 5.526 5.637 5.867 6.105 6.802 6.975 7.336 7.716 8.142 8.394 8.923 9.487 9.549 9.897 10.637 11.436 11.027 11.491 12.488 13.579 12.578 13.181 14.487 15.937 14.207 14.972 16.645 18.531 15.917 16.870 18.977 21.384 17.713 18.882 21.495 24.523 19.599 21.015 24 215 27.975 21.579 23.276 27.152 31.772 33.066 36.786 45.762 57.275 47.727 54.865 73.106 98.347 66.439 79.058 113.283 164.494 120.800 154.762259.057442.593 12% 14% 1.000 1.000 2.120 2.140 3.374 3.440 4.779 4.921 6.353 6.610 8.115 8.536 10.089 10.730 12.300 13.233 14.776 16.085 17.549 19.337 23.045 24.133 27.271 32.089 32.393 37.581 37.280 43.842 72.052 91.025 133.334 181.871 241.333356.787 767.091 1,342.025 16% 18% 20% 1.000 1.000 1.000 2.160 2.180 2.200 3.506 3.572 3.640 5.066 5.215 5.368 6.877 7.154 7.442 8.977 9.442 9.930 11.414 12.142 12.916 14.240 15.327 16.499 17.519 19.086 20.799 21.321 25.733 32.150 30.850 34.931 39.581 36.786 48.497 43.672 50.818 59.196 51.660 60.965 72.035 115.380 146.628 186.688 249.214 342.603 471.981 530.312790.948 1,181.882 2,360.757 4,163.213 7,343.858 25.959 4.533 42.219 6.811 12.808 14.192 15.618 17.086 18.599 26.870 36.459 47.575 75.401 4.611 4.675 4.870 4.948 4.979 4.997 7.469 7.843 8.055 8.244 Print Done Print Print Done A Reference - X i Reference Ans Present Value of $1 Future Value of $1 Periods Periods 10% 16% 1.020 3% 0.971 0.943 0.915 0.888 0.863 14% 1.140 1.300 1.482 1.040 4% 0.962 0.925 0.889 0.855 0.822 0.790 0.760 1% 2% 0.990 0.980 0.9800.961 0.971 0.942 0.961 0.924 0.951 0.906 0.942 0.888 0.933 | 0.871 0.923 0.853 0.914 0.837 0.905 0.820 0.896 0.804 0.887 | 0.788 0.879 0.773 1.689 1.925 10% 0.909 0.826 0.751 0.683 0.621 0.564 0.513 0.467 0.424 0.386 0.350 0.319 2.195 0.452 0.404 0.400 4% 1.040 1.082 1.125 1.170 1.217 1.265 1.316 1.369 1.423 1.480 0.731 5% 6% 0.952 0.943 0.907 0.890 0.864 0.840 0.823 0.792 0.784 0.747 0.746 | 0.705 0.711 | 0.665 0.677 | 0.627 0.6450.592 | 0.614 0.558 0.585 0.527 0.557 0.497 0.530 0.469 0.505 0.442 0.481 | 0.417 0.377 0.312 0.295 0.233 0.231 0.174 0.142 0.097 8% 0.926 0.857 0.794 0.735 0.681 0.630 0.583 0.540 0.500 0.463 0.429 0.397 0.368 0.340 0.315 0.215 0.146 0.099 0.046 0.837 0.813 0.789 0.766 0.744 0.722 0.701 0.681 0.661 0.642 0.554 0.478 0.412 0.307 2502 12% 14% 16% 0.893 0.877 0.862 0.797 0.769 0.743 0.712 0.675 0.641 0.636 0.592 0.552 0.567 0.519 0.476 0.507 | 0.456 0.410 0.400 0.354 0.351 0.305 0.361 0.308 0.263 0.322 0.270 0.227 0.287 0.237 0.195 0.257 0.208 0.168 0.229 0.182 0.145 0.205 0.160 0.125 0.183 0.140 0.108 0.104 0.073 0.051 0.059 0.038 0.024 0.033 0.0200.012 0.0110.005 0.003 18% 20% 0.847 0.833 0.7180.694 0.609 0.579 0.516 0.482 0.437 | 0.402 0.370 0.335 0.314 0.279 0.266 0.233 0.225 0.194 0.191 0.162 0.135 0.137 0.112 0.116 0.093 0.099 0.078 0.084 0.065 | 0.037 0.026 0.0160.010 0.007 0.004 0.001 0.001 3% 1.030 1.061 1.093 1.126 1.159 1.194 1.230 1.267 1.305 1.344 1.384 1.426 1.469 1.513 1.558 1% 1.010 1.020 1.030 1.041 1.051 1.062 1.072 1.083 1.094 1.105 1.116 1.127 1.138 1.149 1.161 1.220 1.282 1.348 0.162 6% 1.060 1.124 1.191 1.262 1.338 1.419 1.504 1.594 1.689 1.791 1.898 2.012 2.133 2.261 2.397 8% 1.080 1.166 1.260 1.360 1.469 1.587 1.714 1.851 1.999 2.159 2.332 2.518 2.720 2.937 1.082 1.104 1.126 1.149 1.172 1.195 1.219 1.243 1.268 1.294 1.319 1.346 1.486 1.641 1.811 0.703 0.676 0.650 0.625 0.601 0.577 0.555 0.456 0.375 0.308 0.208 5% 1.050 1.103 1.158 1.216 1.276 1.340 1.407 1.477 1.551 1.629 1.710 1.796 1.886 1.980 2.079 2.653 3.386 4.322 7.040 1.100 1.210 1.331 1.464 1.611 1.772 1.949 2.144 2.358 2.594 2.853 3.138 3.452 3.797 4.177 6.727 10.835 17.449 45.259 12% 1.120 1.254 1.405 1.574 1.762 1.974 2.211 2.476 2.773 3.106 3.479 3.896 4.363 4.887 5.474 9.646 17.000 29.960 93.051 1.160 1.346 1.561 1.811 2.100 2.436 2.826 3.278 3.803 4.411 5.117 5.936 6.886 7.988 9.266 19.461 40.874 85.850 378.721 18% 1.180 1.392 1.643 1.939 2.288 2.700 3.185 3.759 4.435 5.234 6.176 7.288 8.599 10.147 11.974 27.393 62.669 143.371 750.378 0.290 20% 1.200 1.440 1.728 2.074 2.488 2.986 3.583 4.300 5.160 6.192 7.430 8.916 10.699 12.839 15.407 38.338 95.396 237.376 1,469.772 0.870 0 750 2.853 3.252 3.707 4.226 4.818 5.492 6.261 7.138 13.743 26.462 50.950 188.884 0.263 0.239 1.539 1.601 1.665 1.732 1.801 2.191 2.666 3.243 4.801 0.861 0.820 0.780 0.742 0.672 3.172 | 0.743 0.673 0.610 0.552 0.453 0.149 0.092 0.057 0.022 1.806 2.094 2.427 3.262 3.207 4.292 5.743 10.286 4.661 6.848 10.063 21.725 40 1.489 2.208 Print Done Print Done Ocean World is considering purchasing a water park in Fort Worth, Texas, for $1,950,000. The new facility will generate annual net cash inflows of $500,000 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 12% 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