Cleveland Cove Enterprises 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 B14 Model and the F54 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 8% 0.630 0.583 0.540 0.500 0.463 Present Value of Annuity of $1 8% 4.623 5.206 5.747 6.247 6.710 Periods 6 7 8 9 10 $400,110 $50,110 $155,918 O $470,000 10% 0.564 0.513 0.467 0.424 0.386 B14 Model 10% 4.355 4.868 5.335 5.759 6.145 What is the total present value of future cash inflows and residual value from the B14 Model? Present Value of $1 Periods 6 7 8 9 10 12% 0.507 0.452 0.404 0.361 0.322 $350,000 12% 4.111 4.564 4.968 5.328 5.650 8 $90,000 $30,000 Straight-line 16% F54 Model 14% 0.456 0.400 0.351 0.308 0.270 $250,000 14% 3.889 4.288 4.639 4.946 5.216 8 $28,000 $14,000 Straight-line 10% 16% 0.410 0.354 0.305 0.263 0.227 16% 3.685 4.039 4.344 4.607 4.833

Cleveland Cove Enterprises is evaluating the purchase of an elaberete hydraulio litt system for all of its locations to use for the boats brought in for fepair. The connpany ins narrowed their choices down to two: the B14 Modol and the F5A Model. Financial cata about the two choices follows. What is the total present value of future cash inflows and tesidual value from the B14 Model? $400,110550,1105455,918