Question: It is a four part question please help Points: 15.38 of 40 Splash World is considering purchasing a water park in Atlanta, Georgia, for $1,900,000.
It is a four part question please help

Points: 15.38 of 40 Splash World is considering purchasing a water park in Atlanta, Georgia, for $1,900,000. The new facility will generate annual net cash inflows of $472,000 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 12% 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. Reference $ 1,900,000 $ 472,000 Present Value of Ordinary Annuity of $1 Next, determine the formula and calculate the accounting rate of return (ARR). (Round the percent Periods 1% 2% 3% 4% 5% 6% 7% 8% 9% 10% 12% 14% 15% 16% Period 1 0.990 0.980 0.971 0.962 0.952 0.943 0.935 0.926 0.917 0 909 0.893 0.877 0 870 0 862 Period 2 1.942 1 913 1.886 1 859 1.833 1.808 1783 1.759 1 736 1.690 1.647 1 626 1 605 Average annual operating income Average amount invested 1.970 Period 3 2.941 2.884 2.829 2.775 2.723 2673 2624 2577 2531 2487 2402 2322 2 283 2.246 $ 234,500 950,000 Period 4 3.902 3.808 3:717 3.630 3.546 3.465 3.387 3.312 3.240 3 170 3.037 2914 2855 2.798 Period 5 4.853 4.713 4 580 4.452 4.329 4.212 4 100 3.993 3.890 3.791 3.605 3433 3.352 3.274 Calculate the net present value (NPV). (Enter any factor amounts to three decimal places, X.XXX. Period 6 5 795 5.601 5417 5 242 5.076 4.917 4.767 4.623 4 486 4.355 111 3.889 3.784 3.685 Net Cash Annuity PV Factor Present Period 7 6 728 6.472 6 230 6.002 5 786 5.582 5.389 5.206 5.033 4 868 4 564 4 288 4 160 4 039 Period 8 7 652 7.325 7.020 6.733 6.463 6.210 5.971 5.747 5.535 5.335 4.968 4.639 4 487 4 344 Years Inflow (i=12%, n=8) Value Period 9 8. 162 7 786 7 435 7 108 6.802 6.515 6 247 5.995 5.759 4.607 8.566 5.328 4 946 4.772 Period 10 9.471 8.983 8.530 8.111 7 722 7 360 7 024 6.710 6418 6 145 5.650 5216 5019 4 833 1 - 8 Present value of annuity Period 11 10 368 9.787 9.253 8 760 8306 7.887 7499 7 139 6.805 6495 5.938 5.453 5.234 5.029 0 Investment 5.197 Period 12 11 255 10 575 9.954 9.385 8.863 8.384 7943 7 536 7.161 6814 6.194 5660 5421 Period 13 12 134 11 348 10 635 9 986 9394 8.853 8.358 7 904 7.487 7.103 6.424 5.842 5.583 5.342 " Net present value of the investment Help me solve this Demodocs example Get more help - Print Done 8:12 PM Q Search LO e 9/7/2023 Top Events Event Brief
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
