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Business, 10.12.2019 01:31 kaelynnmarie1135

River wild is considering purchasing a water park in oakland, california, for $2,000,000. the new facility will generate annual net cash inflows of $510,000 for nine years. engineers estimate that the facility will remain useful for nine years and have no residual value. the company uses straight-line depreciation. its owners want payback in less than five years and an arr of 12% or more. the management uses a 10% hurdle rate on investments of this nature. ï‚·

based on your reading, complete the given tasks:

o compute the payback period, the arr, the npv, and the approximate irr of this investment.

o recommend whether the company should invest in this project

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River wild is considering purchasing a water park in oakland, california, for $2,000,000. the new fa...
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