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Business, 18.06.2020 01:57 wildfox479

Water City is considering purchasing a water park in​ Atlanta, Georgia, for $ 1 comma 820 comma 000. The new facility will generate annual net cash inflows of $ 472 comma 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. Requirements
a. Compute the payback, the ARR, the NPV, the IRR, and the profitability index of this investment.
b. Recommend whether the company should invest in this project.

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Water City is considering purchasing a water park in​ Atlanta, Georgia, for $ 1 comma 820 comma 00...
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