Question: Model and the F54 Model. Financial data about the two choices follows. Investment Useful life (years) Estimated annual net cash inflows for useful life Residual

Model and the F54 Model. Financial data about the two choices

follows. Investment Useful life (years) Estimated annual net cash inflows for useful

life Residual value B14Model$250,0008$90,000$30,000F54Model$170,0008$28,000$6,000 Depreciation method Required rate of return Straight-line16%Straight-line12% What

Model and the F54 Model. Financial data about the two choices follows. Investment Useful life (years) Estimated annual net cash inflows for useful life Residual value B14Model$250,0008$90,000$30,000F54Model$170,0008$28,000$6,000 Depreciation method Required rate of return Straight-line16%Straight-line12% What is the net present value of the B14 Model? Present Value of $1 Periods6789108%0.6300.5830.5400.5000.46310%0.5640.5130.4670.4240.38612%0.5070.4520.4040.3610.32214%0.4560.4000.3510.3080.27016%0.4100.3540.3050.2630.227 Present Value of Annuity of $1 Periods 8% 10%12% 14% 16% A. $400,110 positive B. $28,472 negative C. $131,810 negative D. $150,110 positive

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