Nylan Manufacturing is considering two alternative investment proposals with the following details: ______________________Proposal XProposal Y Investment...........................................$730,000.......................$514,000 Useful

Question:

Nylan Manufacturing is considering two alternative investment proposals with the following details:
____________________________________Proposal X______________Proposal Y
Investment...........................................$730,000.......................$514,000
Useful life..............................................5 years..........................4 years
Estimated annual net cash inflows...............$166,000.......................$106,000
Residual value........................................$60,000...............................$0
Depreciation method Straight−line Straight−line
Discount rate 10%
9%
What is the total present value of future cash inflows from Proposal X?
Present value of of $1:
A. $659,099
B. $666,566
C. $629,306
D. $821,523
Annuity
An annuity is a series of equal payment made at equal intervals during a period of time. In other words annuity is a contract between insurer and insurance company in which insurer make a lump-sum payment or a series of payment and, in return,...