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. Requirements Compute the payback, the ARR, the NPV, the IRR, and the profitability index of this investment. Recommend whether the company should invest in this project.