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Family Day Out Fun Center is evaluating the purchase of a new game to be located on its Midway. The company has narrowed their choices

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Family Day Out Fun Center is evaluating the purchase of a new game to be located on its Midway. The company 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 Molo Investment $35,000.00 $20,000.00 Useful 5 5 Estimated annual net cash inflows for 5 years $2,000.00 $9,000.00 Residual van $2.000.00 $4,000.00 Depreciation method straight-line straight-line Required rate of return 4% 10% What is the not present value of the Whack Mole game? Present Value of $1 B% Periods 4% 1 0.962 2 0.925 3 0.889 4 0.855 5 0.822 6 0.790 7 0.760 B 0.731 Present Value of Annuity of $1 6% 0.943 0.890 0.840 0.792 0.747 0.705 0.685 0.627 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 7 0.760 8 0.731 Present Value of Annuity of $1 0.665 0.627 0.583 0.540 0.513 0.467 0.452 0.404 Periods 1 2 3 4 5 6 7 8 4% 0.962 1.886 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 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 4.11 4.564 4.968 O A. $616.00 O B. ($616.00) O C. $8,603.00 OD. ($8,603.00)

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