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 twominusthe B14 Model and the F54 Model. Financial data about the two choices follows.

	B14 Model	F54 Model
Investment	$ 320,000	$ 240,000
Useful life(years)	8	8
Estimated annual net cash inflows for useful life	$ 70,000	$ 35,000
Residual value	$ 30,000	$ 10,000
Depreciation method	Straightminusline	Straightminusline
Required rate of return	14%	10%

What is the net presentvalue(NPV) of the F54 Model and based on NPV which Model would youchoose?

A. $191,395 and choose F54 B. $(53,275) and choose B14 C. $75 and choose F54 D. $(48,605) and choose B14

What is the net present value(NPV) of the B14 Model and based on NPV which Model would you choose?

A. $335,260 and choose B14 B. $15,260 and choose B14 C. $24,730 and choose F54 D. $143,900 and choose F54

The Internal Rate of Return(IRR) of Model B14 is closestto? Using IRR which Model would youchoose? A. 14% and choose B14 B. 12.5% and choose F54 C. 9.4% and choose F54 D. 22% and choose B14 The Internal Rate of Return(IRR) of the F54 Model is the closestto? Based on IRR which model would youchoose? A. 10% and choose F54 B. 2% and choose B14 C. 3% and choose B14 D. 14.6% and choose F54