I need help with this accounting question. I attached a screenshot of the questi

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I need help with this accounting question. I attached a screenshot of the question and screenshots of the related tables. Some tables were long so there will be multiple screenshots of them.

Score: 0 of 15 pts 2 of 2 (0 complete) HW Score: 0%, 0 of 30 pts P12-61B (book/static) E Question Help Lazy River World is considering purchasing a water park in Chattanooga, Tennessee, for $1,950,000. The new facility will generate annual net cash inflows of $505,000 for eight years. Engineers estimate that the facility will rer Settings useful or eight years and have no residual value. The company uses straight-line depreciation ts owners want paybackin less than fie years and an ARR of 10% or more. Management uses a 14% hurdle rate on investments o 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. Round the payback period to one decimal place.) The payback period is years Enter any number in the edit fields and then click Check Answer parts remaining Clear All Check Answer

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Ans 1 Payback period Initial investment/Annual cash net inflow 1950000/505000 3.9 years ans 2 ARR Average Incomee/Avg investment 26.79 % or 26.8% 261250/975000*100 Average Income 505000-(1950000/8) 261250 Annual cash inflow-Depreciation Avg investment 1950000+0/2 975000 ans 3 PV of cash flow 2342695 (505000*4.639) Less: Initial investment 1950000 NPV of Investment B 392695 ans 4 IRR is the rate where NPV is $0 so trial and error method is used the rate is between 19 and 20% as at 14% there was positive NPV Cash inlow $505,000 PVIFA(19.8%,8) 3.86 (505000*4.639) PV of cash flow $1,949,300 Less: Initial investment 1950000 NPV of Investment B -700.0 IRR is 19.79%, if one decimal 19.8% and if zero decimal is 20%

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