Rocco Manufacturing is considering following two investmentproposals:

Proposal X

Proposal Y

Investment

$ 734 comma 000

$734,000

$ 518 comma 000

$518,000

Useful life

5 years

4 years

Estimated annual net cash inflows received at the end of each year

$ 160 comma 000

$160,000

$ 104 comma 000

$104,000

Residual value

$ 60 comma 000

$60,000

$0

Depreciation method

Straightminus

line

Straightminus

line

Annual discount rate

10%

9%

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

Compute the present value of the future cash inflows from Proposal X.