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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 Mole Investment $26,000 $25,000 Useful life 6 6 Estimated annual net cash inflows for 6 years $8,000 $9,000 Residual value $3,000 $2,000 Depreciation method straight-line straight-line Required rate of retum 4% 8% What is the net present value of the Wacky Water Race game? O A $16,607 OB. $(18,306) OC. $(16,607) OD. $18,306
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