Gordon Manufacturing is considering following two investment proposals:

	Proposal X	Proposal Y
Investment	$740,000	$508,000
Useful life	5 years	4 years
Estimated annual net cash inflows received at the end of each year	$154,000	$92,000
Residual value	$66,000	$0
Depreciation method	Straight-line	Straight-line
Annual discount rate	10%	9%

Compute the present value of the future cash inflows from Proposal X. Present value of an ordinary annuity of $1:

	8%	9%	10%
1	0.926	0.917	0.909
2	1.783	1.759	1.736
3	2.577	2.531	2.487
4	3.312	3.240	3.170
5	3.993	3.890	3.791
6	4.623	4.486	4.355

Present value of $1:

	8%	9%	10%
1	0.926	0.917	0.909
2	0.857	0.842	0.826
3	0.794	0.772	0.751
4	0.735	0.708	0.683
5	0.681	0.650	0.621
6	0.630	0.596	0.564