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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:

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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: 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 $35,000 $29,000 Useful life 7 7 Estimated annual net cash inflows for 7 years $8,000 $8,000 Residual value $1,000 $1,000 Depreciation method straight-line straight-line Required rate of return 4% 10% What is the total present value of future cash inflows and residual value from the Wacky Water Race game? on the innate the month of the A. $48,776 B. $47.256 O c. $13,776 D. $39.457 Wacky Water Whack -A- Race Mole Investment $35,000 $29,000 Useful life 7 7 Estimated annual net cash inflows for 7 years $8,000 $8,000 Residual value $1,000 $1,000 Depreciation method straight-line straight-line Required rate of return 10% What is the total present value of future cash inflows and residual value from the Wacky Water Race game? (Click the icon to view the present value of $1 table.) (Click the icon to view the present value of annuity of $1 table.) 4% O A. $48,776 B. $47,256 O c. $13,776 OD. $39,457 Data Table US ES Re Del Re WH Present Value of $1 Periods 1 4% 0.962 0.925 0.889 0.855 0.822 0.790 0.760 0.731 2 3 4 5 6 7 8 6% 0.943 0.890 0.840 0.792 0.747 0.705 0.665 0.627 8% 0.926 0.857 0.794 0.735 0.681 0.630 0.583 0.540 10% 0.909 0.826 0.751 0.683 0.621 0.564 0.513 0.467 12% 0.893 0.797 0.712 0.636 0.567 0.507 0.452 0.404 OOOO Print Done Click to select your answer. US Es Re Data Table X De Re WH 1 Present Value of Annuity of $1 Periods 4% 0.962 2 1.886 3 2.775 4 3.630 5 4.452 6 5.242 7 6.002 8 6.733 6% 0.943 1.833 2.673 3,465 4.212 4.917 5.582 6.210 8% 0.926 1.783 2.577 3.312 3.993 4.623 5.206 5.747 10% 0.909 1.736 2.487 3.170 3.791 4.355 4.868 5.335 12% 0.893 1.690 2.402 3.037 3.605 4.111 4.564 4.968 OOOO Print Done

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