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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
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 Race Whack - A- Mole Investment Useful life Estimated annual net cash inflows for 7 years Residual value Depreciation methoo Required rate of return $39 ,000 $26,000 $7,000 $4,000 straight line $8,000 $5,000 straight line 12% Using the net present value model, which alternative(s) should Family Fun Park select? 0 A. The Whack-A-Mole game should be selected O B. Neither investment should be selected O C. Both investments should be selected O D. The Wacky Water Race game should be selected Click to select your
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