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Stellan Manufacturing is considering the following two investment proposals: Proposal X $730,000 Proposal Y $508,000 5 years 4 years Investment Useful life Estimated annual net
Stellan Manufacturing is considering the following two investment proposals: Proposal X $730,000 Proposal Y $508,000 5 years 4 years Investment Useful life Estimated annual net cash inflows received at the end of each year Residual value Depreciation method Annual discount rate $150,000 $54,000 Straight-line 10% $104.000 $0 Straight-line 9% Compute the present value of the future cash inflows from Proposal Y. 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 3.809 3.791 6 4.623 4.486 4.355 O A. $271,018 OB. $336,960 O c. $254.000 OD. $294,640
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