Dandy's Fun Park is evaluating the purchase of a new game to be located on...
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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 $34,000 $23,000 Useful life 8 Estimated annual net cash inflows for 8 years $6,000 $8,000 Residual value $2,000 $2,000 Depreciation method straight-line straight-line Required rate of return 4% 10% What is the total present value of future cash inflows and residual value from the Whack - A - Mole game? O A. $43,614 O B. $41,746 OC. $66,614 O D. $42,680
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