Stellan Manufacturing is considering the following two investment proposals: Proposal X Proposal Y $508,000 Investment Useful life $738,000 5 years 4 years Estimated annual net cash inflows received $100,000 $0 Straight-line Straight-line 9% $152,000 $62,000 at the end of each year Residual value Depreciation method Annual discount rate Compute the present value of the future cash inflows from Proposal Y. 10% Present value of an ordinary annuity of $1: 8% 9% 10% 0.9260.917 0.917 0.909 1.736 2.487 3.170 3.791 4.355 2 1.783 2.577 1.759 2.531 3.312 3.240 3.809 4.486 4 5 3.993 4.623 $324,000 $294,640 $271,018 $254,000