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