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Compute the payback and the arr and the npv

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Using payback, ARR, NPV, IRR, and profitability index to make capital investment decisions Splash Nation is considering purchasing a water park in Atlanta, Georgia, for $1,910,000. The new facility will generate annual net cash inflows of $483,000 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.

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Question 1: Compute the payback, the ARR, the NPV, the IRR, and the profitability index of this investment. invest in this project?

Reference no: EM132500997

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