Corky's Amusement Park is evaluating the purchase of a new game ...

[nelaaney]

Corky's Amusement Park is evaluating the purchase of a new game to be located on its Midway.  Corky'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 Race	Whack-A-Mole
Investment	$32,000	$22,000
Useful life	5	5
Estimated annual net cash inflows for 8 years	$9,000	$5,000
Residual value	$2,000	$1,000
Depreciation method	straight-line	straight-line
Required rate of return	8%	10%

The total present value of future cash inflows from the Whack-A-Mole game is closest to
◦ $20,586.
◦ $41,576.
◦ $18,955.
◦ $19,576.

[tuwy]

$19,576.

[Medesa]

Corky's Amusement Park is evaluating the purchase of a new game to be located on its Midway.  Corky'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 Race	Whack-A-Mole
Investment	$32,000	$22,000
Useful life	5	5
Estimated annual net cash inflows for 8 years	$9,000	$5,000
Residual value	$2,000	$1,000
Depreciation method	straight-line	straight-line
Required rate of return	8%	10%

The total present value of future cash inflows from the Wacky Water Race game is closest to
◦ $5,299.
◦ $35,481.
◦ $37,299.
◦ $19,576.

[cascooper22]

$37,299.