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 twothe B14 Model and the F54 Model. Financial data about the two choices follows. B14 Model F54 Model Investment $350,000 $220,000 Useful life (years) 10 10 Estimated annual net cash inflows for useful life $40,000 $35,000 Residual value $10,000 $17,000 Depreciation method Straight line Straight line Required rate of return 14% 12% What is the total present value of future cash inflows and residual value from the F54 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 A. $168,000 B. $203,224 C. ($16,776) D. $272,000 22. The two fixed overhead variances are the A. price and usage variances. B. rate and volume variances. C. budget and volume variances. D. rate and efficiency variances