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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 $28,000 $27,000 Useful life 5 5 Estimated annual net cash inflows for 5 years $10,000 $3,000 Residual value $2,000 $5,000 Depreciation method straight-line straight-line Required rate of return 8% 10% What is the total present value of future cash inflows and residual value from the Whack - A - Mole game? Click the icon to view the present value of $1 table.) O A. $11,373 O B. $14.478 Data Table O C. $8,268 OD. $41.478 Present Value of $1 Periods 1 2. 3 4 5 6 7 8 4% 0.962 0.925 0.889 0.855 0.822 0.790 0.760 0.731 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 Print Done Click to select your

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