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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 Whack-A- Race Mole Investment $27,000 $27.000 Useful life Estimated annual net cash inflows for 8 years $10,000 $7,000 Residual value 53,000 $5,000 Depreciation method straight-line straight-line Required rate of return 8% 4% Using the net present value model, which alternative(s) should Family Fun Park select? Click the icon to view the procent value of 1 table A Data Table O A. The Whack - A - Mole game should be selected. OB. The Wacky Water Race game should be selected, OC. Both investments should be selected. OD. Neither investment should be selected. Present Value of $1 Periods 4% 0.962 0.925 0.889 0.855 0.822 0.790 0.760 0.731 10% 0.909 0.825 0.751 RA3 0.943 0.890 0.840 0.792 0.747 0.705 0.665 0.627 0.926 0.857 0.794 0.735 0.6.81 0.630 0.583 0.540 12% 0.893 0.797 0.712 0.636 0.567 0.507 0.452 0.404 R21 0.564 0.513 0.467 Print Done i Data Table 10% PE Present Value of Annuity of $1 Periods 4% 0.962 1.886 3 2 .775 3.630 4.452 5.242 6.002 6.733 6% 0.943 1.833 2.673 3.465 4.212 4.917 5.582 .210 8% 0.926 1.783 2.577 3.312 3.993 4 623 5.206 5.747 0.909 1.736 2.487 3.170 3.791 4.355 4.868 .335 12% 0.893 1.690 2.402 3.037 3.605 4.111 4.564 4.968 1 6 5 Click to select your answer. Print Done
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