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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 Race $31,000 Whack- A- Mole $21,000 Investment Useful life Estimated annual net cash inflows for 6 years Residual value Depreciation method Required rate of returr $7,000 $3,000 straight-line 10% $9,000 $2,000 straight-line 12% What is the total present value of future cash inflows and residual value from the Whack-A Mole game? EEB (Click the icon to view the present value of $1 table.) OA. $38,013Data Table B. $35,985 O c. $36,999 O D. $59,013 Present Value of $1 Periods 6% 8% 10% 0.909 0.826 0.751 0.683 621 0.564 51 0.467 12% 0.893 0.797 0.712 0.636 567 0.507 452 0.404 4% 0.962 0.925 0.889 0.855 822 790 760 0.731 0.943 0.890 0.840 0.792 747 0.705 665 0.627 0.926 0.857 0.794 0.735 681 630 583 0.540
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