Question: please answer the blanks and i will give a like if correct (: Question Help Splash City is considering purchasing a water park in Atlanta,



Question Help 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 $460,000 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 Prosent 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 S1 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, X.X.) Amount invested Expected annual net cash inflow 1,870,000 460,000 Payback 4.1 years Next, determine the formula and calculate the accounting rate of retum (ARR). (Round the percentage to the nearest tenth percent, X.X%) Average annual operating income Average amount invested ARR coad the requirements. Years Inflow (i=12%, n=8) 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 tho payback period is Index is one, and the ARR and IRR are the company's required rate of return. the operating life, the NPV i the profitability Choose from any list or enter any number in the input fields and then continue to the next question. 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 = any should invest in this project. Average amount invested Average annual operating income Initial investment Present value of net cash inflows the operating life, the st in the project because the payback period is Rare the company's required rate of return. Choose from any list or enter any number in the input fields and then continue to the next question. Years Inflow (i=12%, n=8) 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 dex. (Round your answer to two decimal places, X.XX.) 12-14% Profitability inde 14-16% 16-18% Requirement 2. Recommend whether the ivest in this project. 18-20% Recommendation: Splash City invest in the project because the payback period is the operati index is one, and the ARR and IRR are the company's required rate of return. Choose from any list or enter any number in the input fields and then continue to the next
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