Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Family Day Out Fun Center is evaluating the purchase of a new game to be located on its Midway. The company has narowed their choices
Family Day Out Fun Center is evaluating the purchase of a new game to be located on its Midway. The company has narowed their choices down to tap the Wacky Water Race game and the Whack-A-Me pame Financial data about the two choices follows Wacky Water Race Whack-A-Mol Investment $20.000 $32,000 3 Useful le 3 Estimated annual net cash infows for 3 years $5,000 $3,000 $4,000 $3,000 Residual value Depreciation method straight-line 0% straight-line 12% Required rate of retumi What is the total present value of future cash anflows and residual value from the Whack-A-Male game? OA 17472 OB. $11,74 OC. $9,006 OD $31,744 What is the total present value of future cash inflows and residual value from the Whack-A-Mole game? Present Value of $1 Periods 4% 6% 8% 10% 12% 1 0.962 0.943 0.926 0.909 0.893 0.925 0.890 0.857 0.826 0.797 0.889 0.840 0.794 0.751 0.712 0.855 0.792 0.735 0.683 0.636 0.822 0.747 0.681 0.621 0,567 0.790 0.705 0.630 0.564 0.507 0.760 0.665 0.583 0.513 0.452 8 0.731 0.627 0.540 0.467 0.404 Present Value of Annuity of $1 234567 8 0.731 Present Value of Annuity of $1 Periods 4% 1 0.962 2 1.886 2.775 3.630 4.452 5.242 6.002 6.733 3 456 7 8 A. $7,472 B. $11,744 C. $9,608 D. $31,744 0.627 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
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access with AI-Powered Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started