Investment Useful life Estimated annual net cash inflows received Proposal X $736,000 Proposal Y $504,000 5 years 4 years at the end of each year $152,000 $108,000 Residual value $64,000 $0 Depredation 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 $752,238 $576,232 $615,976 $664,516