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18 Investment Useful life (years) Estimated annual net cash inflows for useful life Residual value Depreciation method Required rate of return B14 ModelF54 Model $300,000

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Investment Useful life (years) Estimated annual net cash inflows for useful life Residual value Depreciation method Required rate of return B14 ModelF54 Model $300,000 $160,000 6 $70,000 $37,000 $30,000 $6,000 Straight-line Straight-line 16% 10% Using the net present value model, which alternative should the company select? (Click the icon to view the present value of $1 table.) (Click the icon to view the present value of annuity of $1 table.) O A. Neither investment should be selected. OB. The F54 Model should be selected. O C. Both investments should be selected OD. The B14 Model should be selected. i Data Table Present Value of $1 Periods 8% 0.630 0.583 0.540 0.500 0.463 10% 0.564 0.513 0.467 0.424 0.386 12% 0.507 0,452 0.404 0.361 0.322 14% 0.456 0.400 0.351 0.308 0.270 16% 0.410 0.354 0.305 0.263 0.227 10 Print Print Done Done 1 Data Table 10% 4.355 Present Value of Annuity of $1 Periods 8% 4.623 5.206 5.747 6.247 6.710 4.868 5.335 5.759 6.145 12% 4.111 4.564 4.968 5.328 5.650 14% 3.889 4.288 4.639 4.946 5.216 16% 3.685 4.039 4.344 4.607 4.833 Print Done

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