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Dandy's Fun Park is evaluating the purchase of a new game to be located on its Midway. It has budgeted $40,000 for this purchase. Dandy's

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Dandy's Fun Park is evaluating the purchase of a new game to be located on its Midway. It has budgeted $40,000 for this purchase. 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 Whack-A- Race Mole Investment $32,000 $29,000 Useful life 8 8 Estimated annual net cash inflows for 8 years 99,000 58.000 Residual value $1,000 $4,000 Depreciation method straight-line straight-line Required rate of return 8% 12. Using the net present value model, which alternative() should Family Fun Park select? (Click the icon to view the present value of $1 table.) Click the icon to view the present value of annuity of $1 table.) OA. The Wacky Water Race game should be selected. OB. Both investments should be selected. OC. The Whack-A-Mole game should be selected. OD. Neither investment should be selected. Data Table - X Data Table Present Value of $ Periods 10% 1 2 3 0.982 0.925 0.899 0.815 0.822 0.790 0.780 0.731 0.943 0.890 0.840 0.792 0.747 0.705 0.605 0.627 4 5 8 8% 0.926 0.857 0.794 0.735 0.881 0.630 0.583 0.540 0.909 0.820 0.751 0.683 0.621 0.584 0.513 0.487 Present Value of Annuity of $1 Periods 4% 0.962 1.888 3 2.773 4 3.630 4.452 5.242 8.002 6.733 12% 0.893 0.797 0.712 0.638 0567 0.507 0.452 0.404 8% 0.943 1.833 2.673 3.485 4.212 4.917 5.582 6.210 8% 0.928 1.783 2.577 3.312 3.993 4.623 5.203 5.747 10% 0.909 1.738 2.487 3.170 3.791 4.355 4.888 5.335 12% 0.893 1.690 2.402 3.037 3.805 4.584 4.968 Print Done Print Done

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