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 Whack-A-Mole game. Financial data about the two choices follows. Wacky Water Race $33,000 Whack-A- Mole $22,000 Investment Useful life Estimated annual net cash inflows for 8 years Residual value Depreciation method Required rate of return $10,000 $8000 $4000 $4000 straight-line straight-line 8% 12% Using the net present value model, which alternative(s) should Family Fun Park select? Present Value of $1 Periods 4% 1 0.962 2 0.925 0.889 0.855 0.822 6% 8% 0.943 0.926 0.890 0.857 0.840 0.794 0.792 0.735 0.7470.681_ raw 10% 0.909 0.826 0.751 0.683 0.621 12% 0.893 0.797 0.712 0.636 0.567 5 0.822 0.790 0.760 0.731 0.7470.681 0.705 0.630 0.665 0.583 0.627 0.540 0.621 0.564 0.513 0.467 0.567 0.507 0.452 0.404 7 8 0 3 Present Value of Annuity of $1 Periods 4% 6% 1 0.962 0.943 2 1.886 1.833 2.775 2.673 4 3.630 3.465 5 4.452 4.212 6 5.242 4.917 7 6.002 5.582 8 6.733 6.210 8% 0.926 1.783 2.577 3.312 3.993 4.623 .206 5.747 10% 0.909 1.736 2.487 3.170 3.791 4.355 4.868 5.335 12% .893 1.690 2.402 3.037 3.605 4.111 4.564 4.968 5 The Whack-A-Mole game should be selected. Both investments should be selected. Neither investment should be selected. The Wacky Water Race game should be selected