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Dandy's Fun Park is evaluating the purchase of a new game to be located on its Midway.? Dandy's has narrowed their choices down to? two:

Dandy's Fun Park is evaluating the purchase of a new game to be located on its Midway.? Dandy's has narrowed their choices down to? two: the Wacky Water Race game and the

Whackminus?Aminus?Mole

game. Financial data about the two choices follows.

Wacky Water

Race

Whackminus?Aminus?

Mole

Investment

?$28,000

?$27,000

Useful life

5

5

Estimated annual net cash inflows for 5 years

?$10,000

?$3,000

Residual value

?$2,000

?$5,000

Depreciation method

straightminus?line

straightminus?line

Required rate of return

?8%

?10%

What is the total present value of future cash inflows and residual value from the

Whackminus?Aminus?Mole

?game?

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