Family Day Out Fun Center is evaluating the purchase of a new game to be located on its Midway. The company has narrowed

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Family Day Out Fun Center Is Evaluating The Purchase Of A New Game To Be Located On Its Midway The Company Has Narrowed 1 (47.91 KiB) Viewed 57 times

Family Day Out Fun Center is evaluating the purchase of a new game to be located on its Midway. The company 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. A. $32,361 B. $31,731 C. $57,991 D. $32,991
Investment Useful life Estimated annual net cash inflows for 6 years Residual value Depreciation method Required rate of return Wacky Water Race $32,000 6 $9,000 $4,000 straight - line 4% Whack-A-Mole $25,000 6 $7,000 $1,000 straight-line 8% What is the total present value of future cash inflows and residual value from the Whack - A - Mole game? 6% 0.943 0.890 0.840 0.792 0.747 0.705 0.665 0.627 8% % 0.926 0.857 0.794 0.735 0.681 0.630 0.583 0.540 10% 0.909 0.826 0.751 0.683 0.621 0.564 0.513 0.467 12% 0.893 0.797 0.712 0.636 0.567 0.507 0.452 0.404 Present Value of $1 Periods 4% 1 0.962 2 0.925 3 0.889 4 0.855 5 0.822 6 0.790 7 0.760 8 0.731 Present Value of Annuity of $1 Periods 4% 1 0.962 2 ว 1.886 3 2.775 4 3.630 5 4.452 6 5.242 7 6.002 8 6.733 6% % 0.943 10% 0.909 1.736 1.833 2.673 3.465 4.212 4.917 5.582 6.210 8% 0.926 1.783 2.577 3.312 3.993 4.623 5.206 5.747 2.487 3.170 3.791 4.355 4.868 5.335 12% 0.893 1.690 2.402 3.037 3.605 4.111 4.564 4.968