Reference Reference Reference Reference 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. 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.) Next, determine the formula and calculate the accounting rate of retum (ARR). (Round the percentage to the nearest tenth percent, X.X%.) Calculate the net present value (NPV). (Enter any factor amounts to three decimal places, X.XXX.) 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.) Requirement 2. Recommend whether the company should invest in this project. Recommendation: Splash City invest in the project because the payback period is the operating life, the NPV is the profitability index is one, and the ARR and IRR are the company's required rate of return