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 ace $32,000 Whack - A- Mole $29,000 Investment Useful life Estimated annual net cash inflows for 6 years Residual value Depreciation method $7,784 $0 straight- line $8,719 $0 straight - line If internal rate of return is used to decide which project the decision would be? 0 A. 0 B. C. Choose whack-A-Mole which is 5.8% higher Choose Whack-A-Mole which is 6% higher Choose Wacky Water Race which is 8% lower D. Choose whack-A-Mole which is 8% higher 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 $6,186 $5, 064 Residual value Depreciation method 0 straight- line straight- line Using the Internal rate of return to make the decision, which alternative(s) should Family Fun Park select? 0 A. O B. C. D. The Wacky Water Race game should be selected; 4% lower The Whack-A-Mole game should be selected; 6% higher The Wacky Water Race game should be selected; 6% lower The Whack-A-Mole game should be selected; 4% higher Siesta Manufacturing has asked you to evaluate a capital investment project. The project will require an initial investment of $54,000. The life of the investment is 6 years with a residual value of $6,000. If the project produces net annual cash inflows of $20,000, what is the accounting rate of return? (Round any intermediary calculations to the nearest dollar and your final answer to two decimal places. X.XX%.) If accounting rate of return is used to make the decision and the minimum return is 20% then Siesta would A. B. C, D. 22.22% and not invest 11.11% and not invest 22.22% and invest 37.04% and invest Perry Enterprises is considering purchasing a new machine with a total cost of $31,600 and a useful life of 4 years. The machine will produce net cash inflows of $7,600 over its useful life and has a residual value of $1,510. What is the payback period for the new machine? If Perry Enterprises requires a 5 year payback would they purchase the new machine? 0 A. O B. C. OD. 4.16 years and not purchase the new machine 5.19 years and not purchase the new machine 4.16 years and purchase the new machine 3.47 years and purchase the new machine