anther Inc. is evaluating the purchase of an elaborate hydraulic lift system for all of its locations to use for the boats brought in for repair. The company has narrowed their choices down to two- the A1 Model and the 226 Model. Financial data about the two choices follows. Investment Useful life (years) Estimated annual net cash inflows for useful life Residual value Depreciation method Required rate of return 226 Model $220,000 10 $35,000 $17,000 Straight-line 12% What is the total present value of future cash inflows and residual value from the 226 Model? Table Present Value of $1 Periods 10% 12% 14% 7 0.513 0.452 0.400 8 0.467 0.404 0.351 9 0.424 0.361 0.308 10 0.386 0.322 0.270 0.270 Table Present Value of Annuity of $1 Periods 10% 12% 14% 7 4.868 4.564 4.288 8 5.335 4.968 4.639 9 5.759 5.328 4.946. 10 6.145 5.650 5.216 $168,000 $203,224 $272,000 -$16,776 Il app.honorlock.com is sharing your screen. Stop sharing Hide