The Silverside Company is considering investing in two alternative projects: Project 1 Project 2 Investment $500,000 $240,000 Useful life (years) 8 7 Estimated annual net cash inflows for useful life $120,000 $40,000 Residual value $32,000 $10,000 Depreciation method Straight-line Straight-line Required rate of return 11% 8% What is the accounting rate of return for Project 2? (Round any intermediary calculations to the nearest dollar, and round your final answer to the nearest hundredth of a percent, X.XX%.) If accounting rate of return is used to select the project which project would be chosen? O A. 2.98% and choose Project 2 OB. 2.38% and choose Project 2 OC. 2.38% and choose Project 1 OD. 2.98% and choose Project 1 Dandy's Fun Park is evaluating the purchase of a new game to be located on its Midway. Dandy's has narrowed their choices down to two: the Wacky Water Race game and the Whack-A-Mole game. Financial data about the two choices follows. Wacky Water Whack-A- Race Mole Investment $33,000 $22,000 Useful life 8 8 Estimated annual net cash inflows for 8 years $10,000 $8,000 Residual value $4,000 $4,000 Depreciation method straight-line straight-line Required rate of return 8% 12% Using the net present value model, which alternative(s) should Family Fun Park select? O A. The Whack - A - Mole game should be selected and net present value is $7,270 lower. B. The Wacky Water Race game should be selected and net present value is $6,726 higher. C. The Wacky Water Race game should be selected and net present value is $7,270 higher. OD. The Wacky Water Race game should be selected and net present value is $6,726 lower. Data Table