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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 Whack - A - Mole game. Financial data about the two choices follows. Wacky Water Whack - A- Race Male Investment $32,000 $29,000 Useful life 6 Estimated annual net cash inflows for 6 years $7.784 $8,719 Residual value $0 Depreciation method straight-line straight-line 6 $0 If internal rate of return is used to decide which project the decision would be? O A. Choose Whack-A-Mole which is 8% higher OB. Choose Wacky Water Race which is 8% lower C. Choose Whack-A-Mole which is 6% higher D. Choose Whack-A-Mole which is 5.8% higher
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