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uuestion Dandy's Fun Park is evaluating the purchase of a new game to be located on its Midway. It has budgeted $40,000 for this purchase.

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uuestion Dandy's Fun Park is evaluating the purchase of a new game to be located on its Midway. It has budgeted $40,000 for this purchase. 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 $34.000 $28,000 Useful life Estimated annual net cash inflows for 8 years $7,000 $9,000 Residual value $2,000 $1,000 Depreciation method straight-line straight-line Required rate of return 10% 12% Using the net present value model, which alternative(s) should Family Fun Park select? A. The Whack - A - Mole game should be selected OB. The Wacky Water Race game should be selected O C. Both investments should be selected OD. Neither investment should be selected

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