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Investment Useful life (years) Estimated annual net cash inflows for useful life Residual value Depreciation method Required rate of return B14 Model $330,000 10 $40,000

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Investment Useful life (years) Estimated annual net cash inflows for useful life Residual value Depreciation method Required rate of return B14 Model $330,000 10 $40,000 $10,000 Straight-line 14% F54 Model $160,000 10 $33,000 $19,000 Straight-line 8% Using the net present value model, which alternative should the company select? (Click the icon to view the present value of $1 table.) (Click the icon to view the present value of annuity of $1 table.) O A. The F54 Model should be selected. OB. Neither investment should be selected. O C. The B14 Model should be selected. OD. Both investments should be selected. Present Value of $1 Periods 6 7 8% 0.630 0.583 0.540 0.500 0.463 10% 0.564 0.513 0.467 0.424 0.386 12% 0.507 0.452 0.404 0.361 0.322 14% 0.456 0.400 0.351 0.308 0.270 16% 0.410 0.354 0.305 0.263 0.227 8 9 10 Print Done Present Value of Annuity of $1 Periods 8% 6 4.623 7 5.206 8 5.747 9 6.247 10 6.710 10% 4.355 4.868 5.335 5.759 6.145 12% 4.111 4.564 4.968 5.328 5.650 14% 3.889 4.288 4.639 4.946 5.216 16% 3.685 4.039 4.344 4.607 4.833 Print Done

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