$$

Proposal X

Proposal Y

Investment

$$$$720,000$

$$$$518,000$

Useful life

$5$ years

$4$ years

Estimated annual net cash inflows received

$$at the end of each year

$$$$152,000$

$$$$98,000$

Residual value

$$$$64,000$

$$$$0$

Depreciation method

Straightminus$$line

Straightminus$$line

Annual discount rate

$10\%$

$9\%$

Compute the present value of the future cash inflows from Proposal X$.$

Present value of an ordinary annuity of$$ $$1$:

$$

$8\%$

$9\%$

$10\%$

$1$

$0\mathrm{.}926$

$0\mathrm{.}917$

$0\mathrm{.}909$

$2$

$1\mathrm{.}783$

$1\mathrm{.}759$

$1\mathrm{.}736$

$3$

$2\mathrm{.}577$

$2\mathrm{.}531$

$2\mathrm{.}487$

$4$

$3\mathrm{.}312$

$3\mathrm{.}240$

$3\mathrm{.}170$

$5$

$3\mathrm{.}993$

$3\mathrm{.}890$

$3\mathrm{.}791$

$6$

$4\mathrm{.}623$

$4\mathrm{.}486$

$4\mathrm{.}355$

Present value of$$ $$1$:

$$

$8\%$

$9\%$

$10\%$

$1$

$0\mathrm{.}926$

$0\mathrm{.}917$

$0\mathrm{.}909$

$2$

$0\mathrm{.}857$

$0\mathrm{.}842$

$0\mathrm{.}826$

$3$

$0\mathrm{.}794$

$0\mathrm{.}772$

$0\mathrm{.}751$

$4$

$0\mathrm{.}735$

$0\mathrm{.}708$

$0\mathrm{.}683$

$5$

$0\mathrm{.}681$

$0\mathrm{.}650$

$0\mathrm{.}621$

$6$

$0\mathrm{.}630$

$0\mathrm{.}596$

$0\mathrm{.}564$

Question content area bottom

Part $1$

A$.$

$$$$576,232$

B$.$

$$$$752,238$

C$.$

$$$$615,976$

D$.$

$$$$650,070$